In addition to the initial VC fund, Guoke Jiahe's investment strategy has gradually extended to both ends, on the one hand, more risky early betting, and on the other hand, the stable return of PE.
Guokejia and Managing Partner Wang Ge
Every year, Guoke Jiahe (Beijing) Investment Management Co., Ltd. (hereinafter referred to as "Guoke Jiahe") screens more than 10,000 BPs, interviews more than 2,000 projects, and after three rounds of selection, there are also 300 or 400 in the hands of managing partner Wang Ge. Wang Ge spoke quickly and his thinking was clear, "A project can be talked about for an hour and a half to explain clearly, the first half hour of 'makeup removal', the second half of the hour to figure out what he is doing." ”
The epidemic has been repeated, and the due diligence of investors has also been completed on the cloud. As soon as the situation improved, Wang Ge went on a "retaliatory business trip." Every time he came to the company, he filled several meetings and mixed with various internal communication meetings. "Lunch is a packed lunch with the project party."
The investment industry looks bright and beautiful, but it is the industry that emphasizes diligence the most, and it is inseparable from more running, more watching, and more experience. Judging from the results, Wang Ge's hard work has also been rewarded.
Since its inception in 2011, Guoke Jiahe has invested in Guoke Hengtai (Beijing) Medical Technology Co., Ltd. (hereinafter referred to as "Guoke Hengtai"), Beijing Wanlihong Technology Co., Ltd., Qingdao Huituo Intelligent Machinery Co., Ltd., Beijing Easystar Technology Development Co., Ltd., Shanghai Titanium Robot Co., Ltd., Shanghai Nanxin Semiconductor Technology Co., Ltd., Yishi Technology (Beijing) Co., Ltd., Hangzhou Yunhu Network Technology Co., Ltd., Jindian Lianhang (Beijing) Information Technology Co., Ltd., Guangzhou Weiyuan Gene Technology Co., Ltd., Shenzhen Prijin Biopharmaceutical Co., Ltd., Shenzhen Yidao Information Co., Ltd., Shanghai Zhiwei Robot Co., Ltd., Shenzhen Zhongke Fei test technology co., LTD. (hereinafter referred to as "Zhongke Fei test") and other more than 100 projects, of which 20 have achieved withdrawal and harvested a good return on investment.
With the relaxation of the exit channels of the capital market for hard technology enterprises and the gradual maturity of the project, the next one or two years will be the "big year of exit" of Guoke Jiahe.
Top-notch earnings have also attracted continued investment from top LPs. In the past 9 years, Guokejiahe has managed 10 funds with a scale of tens of billions of yuan. Even in the cold winter of capital, it still maintains a stable pace of fundraising.
In the second half of last year, Guoke Jiahe launched the fundraising of the third phase of the growth fund. Wang Ge told the magazine that the fund with a planned size of 1.5 billion yuan is about to be completed.
<h1 class= "pgc-h-arrow-right" > the "face" and "lizi" behind the scale of tens of billions</h1>
Entering 2020, the first fund established by Guokejiahe began to enter the liquidation period. The fund, which invests in mid-to-early-stage projects, has invested 500 million yuan in total, with a cumulative investment in 28 companies, focusing on the technology field.
For LPs, the performance of the Phase I Fund is crucial, which is one of the conditions for continued funding in the future. Especially at present, the more professional institutional LPs are also more comprehensive in their examination of GPs, not only to see the performance of a certain fund, but also to pay attention to whether it can bring sustainable returns to itself, and whether it has a unique and keen investment perspective, brand influence and characteristics.
Since its establishment, Guoke Jiahe has always had early LPs to follow. In 2018, Guoke Jiahe completed the fundraising of the second phase of the PE fund with a scale of 3 billion yuan. Many large enterprise groups are Guokejia and the earliest investors, starting from the first phase of the fund to cooperate, since then, RMB VCs and US dollar VCs have continued to follow.
In addition, the investor lineup of Guokejia and series funds is extremely strong. Not only is the Chinese Academy of Sciences Holdings Limited ("Guoke Holdings") the cornerstone investors, but also the Ministry of Science and Technology, the Beijing Finance Bureau, Chinese Life Insurance Co., Ltd., China Communications Construction Co., Ltd., Century Jinyuan Group, as well as a number of listed companies and internationally renowned sovereign wealth funds.
The first phase of the "star-studded" LP may look at "face", but the performance of real money and silver is the "lizi" of continuous investment.
"Our early LPs have been following until now, and it also proves from the side that our performance is excellent." Wang Ge said, "In addition to our good texture and service in place, the most important thing is to make money for the LP." ”
In terms of LP composition, GuokeJiahe tends to be more diversified. At present, guokejiahe's LPs are mainly divided into three categories: the first is the national guidance fund, such as the Beijing Science and Technology Innovation Fund of Funds; the second type is insurance funds, such as Chinese Life Insurance Co., Ltd., Taikang Insurance Group Co., Ltd. (hereinafter referred to as "Taikang"), etc.; the third type is private listed companies and large comprehensive groups.
Among the LPs in the industry, the most stringent is the insurance capital, with high thresholds and strict standards. In particular, private insurance funds such as Taikang are more cautious when investing in equity. "The money we get represents our performance, management level and service level."
The abundance of funds gave Wang Ge greater confidence. In addition to the initial VC fund, Guoke Jiahe's investment strategy has gradually extended to both ends, on the one hand, more risky early betting, and on the other hand, the stable return of PE.
Specifically, Guokejiahe includes a RMB angel fund, three RMB growth funds, two RMB buyout funds, a US dollar venture capital fund, a national cyber security fund and two government special funds, with a total management amount of tens of billions of yuan.
From the early days to PE, from the renminbi to the US dollar, the inclusiveness and coverage of Guokejiahe is constantly expanding, but the investment direction has always been the same. Wang Ge stressed, "We have been focusing on emerging technology fields with high growth and high technological barriers. ”
< h1 class= "pgc-h-arrow-right" > highly focused and heavily vertical</h1>
In the industry, Guokejia and have several clear labels.
The first is "hard technology", the fund mainly focuses on the investment layout in seven major areas such as IoT intelligent manufacturing, mobile Internet and services, big data and artificial intelligence, financial technology, security, medical services, medical devices and pharmaceuticals. Among them, TMT accounts for 70% of the total investment share, and life sciences account for 30%.
"When our first fund was founded, there was no concept of 'hard tech fund' in the market. Most of the funds on the market now claim to be investing in hard technology. "In 2011, the mobile Internet investment boom surged, and the heat of capital was occupied by projects such as games, O2O, and pan-entertainment, and model innovation was the outlet.
In the face of various "noise and turmoil" in the market, Guoke Jiahe has always maintained independent thinking, focusing on hard technology, "hot projects have also been seen, but there is no investment, we still hope to focus on the areas we are good at." ”
This also confirms another label of Guoke Jiahe: technology adherence - focusing on in-depth research in one area and understanding the industry.
Guoke Hengtai is a typical case. Founded in 2013, the company is mainly engaged in the distribution and direct sales of medical devices, and is committed to becoming "China's leading integrated service provider of digital supply chain for medical devices". When the first round of financing was launched in 2015, Guoke Jiahe was on the list of its investors.
Guoke Jiahe witnessed the growth of Guoke Hengtai from five or six members to today's team of more than 1,000 people, during which three rounds of continuous betting have been made.
In the past three years, the performance of Guoke Hengtai has continued to rise. According to its prospectus, from 2017 to 2019, Guoke Hengtai achieved operating income of 2.316 billion yuan, 3.637 billion yuan and 5.279 billion yuan, with an average growth rate of 51.10% in three years. In the future, once Guoke Hengtai lands in the capital market, Guoke Jiahe will also achieve a bumper harvest.
In the list of Guokejia and Investment, many companies are born out of the Chinese Academy of Sciences - this is also its third label, "Chinese Academy of Sciences Investment Platform".
For example, in Guoke Jiahe's portfolio, Beijing Zhongke Haina Technology Co., Ltd. was born in the Institute of Physics of the Chinese Academy of Sciences, Suzhou Suna Optoelectronics Co., Ltd. was born from the Suzhou Institute of Nanotechnology and Nanobionics of the Chinese Academy of Sciences, Beijing SECCO Kanglun Environmental Protection Technology Co., Ltd. was born from the Institute of Process Engineering of the Chinese Academy of Sciences, Hangzhou Zhongke Aurora Technology Co., Ltd. was incubated by the Institute of Physical and Chemical Technology of the Chinese Academy of Sciences, and the core team of Zhongke Fei test came from the Institute of Microelectronics of the Chinese Academy of Sciences. Guoke Quantum Communication Network Co., Ltd. (hereinafter referred to as "Guoke Quantum") is jointly established by the Chinese Academy of Sciences (hereinafter referred to as the "Chinese Academy of Sciences"), the University of Science and Technology of China and the team of academicians Pan Jianwei, etc.
With the various rich resources owned by the Chinese Academy of Sciences and Guoke Holdings, including brands, Guoke Jiahe not only has a huge pool of case sources from the Chinese Academy of Sciences system, but also can provide unique value-added services based on the scientific research and industrial resources of the Chinese Academy of Sciences.
Wang Ge is an engineer with nearly 30 years of entrepreneurial and practical business management experience. In addition, the fund's management team has a background in science and engineering, and not only has a deep understanding of high-tech barriers to technological entrepreneurship, but also knows the opportunities and challenges faced by high-tech entrepreneurship.
Take Guokejia and the Chinese Academy of Sciences scientific research achievements transfer and transformation classic project Guoke Quantum as an example. The quantum communication industry has a high technical and talent barriers, and innovative research results in this field can ensure that China is not controlled by others in the international information security competition pattern.
"The quantum secure communication industry is not controlled by people in the core technology field, Guoke Quantum is not only leading in technology, but also in the improvement of the industrial chain, product development and application is also at the forefront of the world, high technical barriers and commercial application prospects, is the type of project favored by GuokeJiahe." Wang Ge once commented on Guoke Quantum.
Nowadays, the linkage within the system is gradually strengthening. Recently, the Chinese Academy of Sciences Science and Technology Innovation Investment Industry Alliance (hereinafter referred to as the "Chinese Academy of Sciences Science and Technology Innovation Investment Alliance") was announced, marking that the synergy between technology, capital and industrialization in the future system will continue to enlarge.
In fact, there has long been such a linkage in the system, as the A round investor of Guoke Hengtai, Guoke Jiahe actively helps the project find late investors in the later stage, and also introduces Legend Capital Management Co., Ltd., which is also an institution within the system of the Chinese Academy of Sciences Science and Technology Innovation Investment Alliance.
"The Chinese Academy of Sciences Science and Technology Innovation Investment Alliance can form a close industrial synergy, and the institutions in the system perform their respective duties and play their own roles." Some institutes provide technology, invested by angel funds, grow to a certain extent by VCs like us, and projects can also be co-invested. Wang Ge said, "The role of the Chinese Academy of Sciences Science and Technology Innovation Investment Alliance on the inside is to improve efficiency and mutual coordination, and to the outside is to complement each other, collectively speak out, and have a greater impact on the industry." ”
<h1 class= "pgc-h-arrow-right" > don't waste a good crisis</h1>
Wang Ge is a member of the Academy of Sciences who worked in the Chinese Academy of Sciences system for more than 20 years before founding Guoke Jiahe. Understand technology, dare to innovate, but also keep lonely, can stick to themselves - this may be the "highest allocation" of investors in the field of science and technology.
For the industry development cycle and market pain points, Wang Ge has a deep understanding. Hard technology investment is a "heavy asset" project, with a high investment threshold, a long cycle and a large investment. "Most people in this industry are following the trend, can adhere to their own investment methodology and logic, do not like things and do not feel sad about themselves, and need to continue to cultivate."
But on the other hand, with the changes in the market environment, he also adheres to the investment philosophy while making adjustments and changes accordingly. But "how to change, where to change" is always a challenge.
Wang Ge stressed, "It is not to change the track, but to control the track." Whether a project can be invested or not at this time, what price to invest, this is what we need to constantly correct. ”
In addition, it is the timing of the timing. Six or seven years ago, Wang Ge watched a large number of O2O, Internet finance projects, the most popular time, funds lined up to invest, do not need due diligence to grab the share. Wang Ge said frankly that such projects will not be invested by Guokejiahe. "It doesn't fit into basic investment logic."
For the current seemingly lively but contrary to common sense entrepreneurial projects, Guokejia and Ning tend to be cautious.
"There are three main ways for the fund to make money, either to earn the difference between the primary and secondary markets, or to rely on the secondary market bubble brought about by the over-issuance of currency, and then to keep their own industry and earn endogenous money through technological upgrading." Either one makes sense, but understand where your abilities lie. ”
Nowadays, the "two-eight differentiation" of the market pattern of the investment industry has intensified, and differentiated competition has accelerated.
According to the data of the past five years, the elimination rate of head institutions in 5 years has reached 41.5%. In this context, the market has gradually formed three types of institutions with distinctive characteristics: one is a large platform institution that takes the asset management route, such as Hillhouse, KKR, etc.; the second is a comprehensive fund of the head, such as Sequoia and IDG; the third is a vertical professional fund that relies on the advantages of technical background to conduct in-depth analysis of the industry, such as Guoke Jiahe.
This year, the sudden outbreak has slowed down the overall pace of the venture capital market. In Wang Ge's view, the epidemic "black swan" is also a stress test for the investment industry, just like Churchill's famous saying - "Don't waste a good crisis". Behind the crisis means the possibility of change, and even the opportunity to stand out.
Fearless of the storm, Guoke Jiahe, which has been investing in hard technology and low-key cultivation, will usher in a bumper harvest this year and next year.
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