Financial Industry Website News On December 17th, the fourth "Pilot China" annual forum hosted by the financial industry website and tsinghua university Wudaokou School of Finance as the academic organizer was held in the Westin Hotel in Beijing, the forum took "new finance , new power" as the theme, the forum invited the "one bank, three sessions" regulatory leaders and industry association leaders, top financial research institutions experts and scholars, financial institution executives and other guests to attend, they will discuss from the key points of policy and regulations, financial supervision, industry reform and so on. Show the best thinking and vitality of China's financial industry.
Song Wei, co-founder of Dianshi Micro Investment Bank
In an interview with the financial industry website, Song Wei, the co-founder of Dianshi Micro Investment Bank, entered the subdivision industry of equity crowdfunding, and said that he had four criteria for testing good projects, "First, we need entrepreneurs with capital dreams, and their willingness to default is low." Second, enterprises with good cash flow and high gross profit. Third, there have been VC investments before. Fourth, investigate the authenticity of the company's various data. ”
The following is a transcript:
Moderator: Mr. Song, welcome to the financial industry website. The development momentum of Internet finance this year is still rapid, but at the same time we also know that there have been many accidents recently, first of all, I would like to ask you how to see the problems that have arisen in the development of Internet finance, the problem in this process is an obstacle to the future healthy development of Internet finance?
Song Wei: Actually, it is very coincidental, just today I just wrote an article "The Speed of Life and Death of P2P Jianghu", I think that in fact, doing Internet finance in China, especially doing P2P, is a very difficult thing, where is the biggest difficulty? Because we are now in this society, in fact, in the minds of investors, the concept of just being broken has always been deeply rooted, in this case, P2P wants to obtain high-yield assets continuously and stably, and the problem platform still has to come, which is an impossible task in itself. Therefore, for the majority of Internet financial enterprises, on the one hand, you have to operate steadily and make a small and beautiful platform, and the scale may not go up, because you simply cannot find sustained high-quality assets to satisfy investors. Chinese has always been big for the united states, no scale there is no eyeball, no traffic, no financing, you can also choose to do scale, but we know that the current P2P platform operating costs are too high, either too many people, the number of employees, or the cost of customer acquisition is too high, coupled with the spread is also relatively narrow, there may be bad debt provision is not very sufficient, the business model itself is not mature enough, the scale has not yet passed the critical point of profitability, the larger the scale, the greater the theoretical loss, the greater the loss, We see that some companies in the market are taking risks, and lucky companies can be large enough to obtain equity financing, so that his cash flow will be more benign. But this is a dilemma, either to do small and beautiful, but there is a possibility of being overwhelmed, no one notices you, still a high cost in or guests, or all the way to run wildly, through rapid expansion of their own more rapid securitization, and finally to the success of the enterprise is not much, now in the P2P platform currently including other Internet financial platforms to a very good shore is currently very difficult, the logic is like this.
Moderator: It's a dilemma.
Song Wei: Right.
Host: Dianshiwei is a very subdivided industry, why would you choose such a segmented field for a business? Also about how do you manage your risks?
Song Wei: That's a good question.
First of all, we are also an enterprise, I want to stand out from so many competitors, I must focus and differentiate, because we are not a bank, or a subsidiary of a state-owned enterprise, although our shareholder background is very strong, but we are a new start-up platform after all, when we are not so strong foreign aid, use resources to where we are best at our ability, and use this money to the place where we can produce the most benefits.
We now choose two aspects: on the one hand, from the asset side, we choose a lifestyle consumer service enterprise, such a company in the current Chinese financing market is not very popular, most of them are not able to get the money of investment institutions, there are some lucky to get, but a minority, basically the bank will not lend them money, because he does not meet the basic logic of China's financing market, there is no collateral, but to know these enterprises, especially the medical beauty we are now focusing on, As well as special education and training, their profits are very good, such enterprises to accept our relatively high financing costs, I think it is able to afford them. Originally, there were not too many people to give them money, I had a relative competitive advantage, there was a reason to choose from the asset side, our team also had some accumulation in this, including me and my partners in this area invested in a lot of life service companies, are concentrated in this field. Including another partner, who was previously an executive of a boutique media group, I think our full-service capabilities understand this industry, it is easier for us to grasp the needs of this type of enterprise, which is the asset side.
Second, from our C-level customers, traffic side, we choose the vast number of urban middle class, in fact, this is a relatively large group, we have a feeling, now Internet finance has entered a misunderstanding, each company has invested a special amount of money, resources in buying traffic, but how many people are really buying Internet financial products, there are various statements, some people say two or three million, some people say ten million, twenty million, I estimate that this number will not exceed twenty million, this number is too small. China has a large number of people's financial needs have not been explored at all, we choose to live in the city, especially in the second-tier, third-tier cities some of the life is relatively rich, there are people with financial knowledge, a year income may be 50,000-100,000, there are cars, there are houses, but there are not too many investment opportunities, we put us this kind of they are more likely to understand the life of the enterprise recommended to them, very well understood, education and training, medical beauty is usually easy to imagine, we will give such enterprise asset securitization to them, I believe this is more acceptable for them and meets their requirements for yield. This is the first aspect.
Second, how do we do risk control, I believe that for a business company that does something related to finance is the most important issue, we look at this matter in this way. First, although there are a large number of life service enterprises that need us to give them money, we finally choose a small part, which has several characteristics:
1. They are a group of people with capital market dreams doing entrepreneurship, that kind of simple just do a few stores to make a living, to make money business model, we feel that the gait can be grasped, only this enterprise is out of the basic needs of food and clothing, to chase the bigger capital dream, I will lend him money, it will not be too much, it is a rare thing for him, I think his willingness to default is very low.
2. Our corporate cash flow is very good, like education a lot of advance receipts, gross profit is very high, there are enough funds, profit margins to cover my financing costs, on the one hand, there is no willingness to default, in addition to the ability to perform the contract is also relatively strong, plus we will see if there is a VC investment, we can also use the platform to invest in him a little equity of the parent company, so that I will have greater control, to prevent him from defaulting, monitor it. Give me the choice of this enterprise business model I just talked about, the state of the actual controller of the enterprise, chasing the capital market, not just making money, such a few points, we are doing risk control on it.
In addition, it is our routine to do the necessary verification of the authenticity of the investment, is true, is false, we are experienced, I because we have been doing investment for many years, these aspects combined, we can reduce the probability of problems to a relatively low.
Moderator: There are several conditions for risk control, the first will examine whether the founder has a dream of the capital market entrepreneurs, if you are only satisfied with the current problem of food and clothing, in fact, you will refuse, because you think that people with capital market dreams will default relatively low. In addition, it is necessary to examine whether the cash flow of the enterprise is operating well.
Song Wei: His business model is not highly profitable.
Moderator: In addition, you mentioned that there is no investment in VCs before, and the previous VCs are equivalent to endorsements.
Song Wei: Equivalent to bonus points.
Moderator: In addition, the authenticity will be examined, and these four items will judge a company.
At present, in fact, the investment bank has not been online for too long, what are the expectations for the future, can you share with us the dialysis plan?
Song Wei: Say a little bit of sentimental things, the reason why we do this thing, I definitely don't want to just make money, because our company's entrepreneurial team has already passed the stage of food and clothing that I just talked about, what we do is something that may be called great, China's way of life is growing every day, developing a group that they really can hardly care for in the capital market, what we are doing is to help more people to start a business, make their own careers and embark on the dream of the capital market. Our vision helps more entrepreneurs with ideals grow up in this area of lifestyle.
For the time being, the first hope is to make our scale larger under the premise of controlling the risk, and it is certainly good to be big for the united states, but we must firmly adhere to the concept and measures of several risk control just now, keep this bottom line, and I will do the scale, we expect that within next year, we should be able to achieve a financing scale of 1 billion yuan, and there should be a larger growth in the next year. Only by having scale can I have a greater influence on my company and serve more enterprises.
Second, we will also use the power of our own media to educate investors more, there are too many investors in this market for the income has a surreal imagination, we have to communicate with them through a variety of activities, through our own platform, public account to publicize, so that they themselves in the investment process continue to feel how to invest in the income, in the end how much is a reasonable return. In fact, we are usually writing articles, doing various speeches to communicate with investors, we do not want to deceive investors through a not very good way, I tell you that my money is invested here is to invest in the designated project, the income obtained is not so exaggerated, but it is okay, through our sincerity to do this thing so that more people can trust us, really realize what I just said, the first is to control the risk to do scale.
Host: Is this what you're looking forward to for the future?
Song Wei: I think this must be the case in recent years.
Moderator: Thank you Mr. Song.
(End)
!["Faku character" Song Wei[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)