Alpha Commune
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Alpha Commune said: On October 28, the CICC Kaiyuan National Emerging Industry Venture Capital Guidance Fund held the 33rd Kaiyuan Lecture Hall activity in the form of online live broadcast. Xu Siqing, founding partner and CEO of Alpha Commune, was invited to deliver a keynote speech on "Angel Investment in Science and Technology under the New Situation" at the CICC Qiyuan Lecture Hall. This article is transferred from the report of the official public account of CICCcapital on this issue of the lecture hall, which gathers Xu Siqing's wonderful views in the speech and enjoys.
Xu Siqing began with a comprehensive analysis of the general environment and investment preferences of China and the United States. From the total number of listed companies in China and the United States, it can be seen that in recent years, the listing of Chinese companies has entered a stage of rapid growth, far exceeding the scale of the United States; from the perspective of previous years, in the Sino-US technology sector IPO, the US market focuses on the B-end, and unicorn companies are concentrated in network software/services, financial technology, artificial intelligence and other industries; while China is concentrated in the C-end outbreak, unicorns are concentrated in e-commerce, travel and transportation.
Xu Siqing proposed that the to b business has great growth potential in China. On the one hand, the proportion of IAAS and SAAS in China and the United States is inverted, and the more mature US market SAAS services account for more than 70% of the entire market, while the Chinese market infrastructure services account for more than 70%, which means that the software and service business has a lot of room for growth. Secondly, from the perspective of enterprise investment, China's average it expenditure per enterprise has a 10-fold gap with the United States, and this 10-fold potential growth space is the opportunity for Chinese entrepreneurs and investors.
Xu Siqing believes that China's capital is still more dependent on the demographic dividend and the model innovation dividend, and proposes that the transformation of science to productivity is a long-term and relatively uncertain process. From the data of the top ten breakthrough technologies and the largest IPO cases in the United States summarized by MIT every year, it can be seen that the proportion of the most disruptive technologies selected by scientists can be transformed into the best listed companies is not high. Xu Siqing believes that from the perspective of scientific and technological innovation, industrial research is an important reference basis, but there are still uncertainties and need to be tested in practice.
Xu Siqing shared the science and technology investment strategy of Alpha Commune, and proposed that on the one hand, it is necessary to look at the entire macro environment, judge the domestic and foreign environment, industry trends, and track selection; on the other hand, it is necessary to constantly observe the details, judge the elements of the project itself, the founder, and the team, and form a three-dimensional perspective and draw a clear conclusion by integrating the two aspects.
The online participants actively asked questions about the entrepreneurship of scientists, the changes in investment strategies in the angel field, how investment institutions should adjust to deal with the unclear exit channels/methods of technology enterprises, the most difficult problems in the process of entrepreneurship of technology enterprises, and the analysis of the growth path of vertical/general enterprise service companies.
Ms. Yang Yue, Managing Director of CICC Qiyuan National Emerging Industry Venture Capital Guidance Fund, presided over the qiyuan lecture hall activities.
Xu Siqing biography
Xu Siqing, founding partner and CEO of Alpha Commune, serial entrepreneur, has started three businesses, successfully led the startup company Chinaacache to list on nasdaq in the United States as a coo in 2010, and then served as the investment partner of Innovation Factory, the chief marketing officer of Qihoo 360, and later joined CEI as the managing director responsible for investment and management in China, and founded the angel investment agency Alpha Commune in 2015.
Xu Siqing has more than 20 years of experience in the IT, Internet and telecommunications industries, and has founded Microsoft's South China business and served as the first general manager, serving as the general manager of the data business of China Network Communications Co., Ltd. and the chief marketing officer of eLong Travel Network. Xu Siqing won the 2020 "Forbes China Best Venture Capitalist Top 100" and 36Kr "2018 Top 10 Investors in China's Corporate Service Field" and other awards.
Xu Siqing graduated from the University of Science and Technology of China and the Chinese Academy of Sciences with bachelor's and master's degrees, majoring in modern mechanics and materials physics.
This article is reprinted from CICCCAPITAL with permission.
About Alpha Commune
The Alpha Startup Fund is China's leading early-stage investment fund, co-founded in 2015 by Xu Siqing, who led the company's NASDAQ-listed company, and Yameng Jiang, a former co-managing partner of Innovation Factory.
The three characteristics of the Alpha Commune Fund are systematic investment, social entrepreneur community operation and accelerated growth of heavy industrial resources. Focus on early investment in semiconductors, enterprise service software, artificial intelligence applications, Internet of Things technology, financial technology and other technological innovation fields. At present, it has invested in a large number of outstanding projects including Baishan Cloud Technology, Advance Intelligence Group, Zenlayer, Vernier Technology, Sosi Technology and so on in the angel round.
Alpha Commune won 36Kr "2017 Most Popular Angel Investment Institutions for Entrepreneurs", "2019 China's Most Popular LP Early Investment Institutions", "2019 China's Most Discoverable Investment Institutions in China's Enterprise Service Sector Top 10", "2020 China's Most Popular Early-stage Investment Institutions Top50", "2021 China's Most Popular LP Recognized Early-stage Investment Institutions Top30", and won titanium media's "2020" edge top50 investment institutions"; it also won awards such as "Top 30 Best Returns of China's Early Funds in 2018", "Top 30 Best Returns of Early Funds in China in 2019", and "2020 China Investment Institutions Soft Power GP100 Technology Power Top 10" by Fund of Funds Weekly.
Founding partner Xu Siqing won the 2020 "Forbes China Best Venture Capitalist", "2019 China's Best Early Investor Top50", as well as 36Kr "2018 China Enterprise Service Investor Top 10" and "2019 Enterprise Service Investor Top 20" and other awards. Founding partner Jiang Yameng won the 2019 "Forbes China Best Venture Capitalist" and 36Kr "2019 China Mesozoic Investor Top 50" awards.