In just 3 or 4 months, Netscape went public, Yahoo went public, and Microsoft's latest generation operating system, Windows 95, also entered the world's attention with a hot attitude. In this superposition of fueling the flames, the Internet, a huge and brand-new mine, naturally began to appear in the coveted eyes of Shashan Road and Wall Street.
With attention comes competition. Before the rise of the Internet boom, the touchstone was still picking up diamonds that fell in the wilderness, which was basically a business without capital. When Shashan Road really started to exert its strength, the pressure it faced began to surge in an instant, and the funding issue naturally became a very critical part.
According to the practice of venture capital, from the seed company to the official listing, venture capital is generally divided into several stages. The initial angel investment, then the first round of investment (also known as seed investment), and then the subsequent A, B, and C rounds of investment, until the listing. Among all investment links, angel investment has the highest rate of return, but it also has a high degree of risk and low actual returns.
The reason is also very simple. Even if there is a 10-fold return, the amount of angel investment is usually only $100,000-500,000, and a 10-fold increase is not a big deal. At the same time, it is unknown whether the invested companies can really grow. Among the hundreds of seed companies that appear every year, less than one-tenth of them can survive a year, and among these tenths, the ones that can go public are even more so. Very few.
Therefore, those mature large-scale venture capital companies often join the investment ranks after the A round or even the B round, betting on those companies that have begun to take shape and have great potential, and obtain not crazy, but very stable income . However, when an investment field starts to become popular, the boundary between venture capital and angel investment will blur in an instant, and large companies will gradually penetrate into the direction of the first round of investment, which is bound to have a certain impact on small and medium-sized investment companies.
As a small VC firm, Touchstone faced a similar problem. Although it has a great advantage in the early stage and has made some names for itself, it is still difficult to compare with large companies in terms of scale, human resources and even financial resources. At the same time, if you want to hold more shares in the seed company and control your own share capital from being easily diluted, you must also strive to join the first round or even the A round of investment, and this link requires extraordinary funds.
The investment made by Dianjinshi in the past two years can be said to be quite considerable. There are more than 58 seed companies involved, and more than 10 have entered the first round of investment. If not for some seed companies that were acquired by large groups The income, as well as the capital increase investment from futures, may have been unsustainable for a long time.
Therefore, Yahoo's transaction not only made the Golden Stone famous, but also successfully solved the current dilemma of lack of cash, giving the Golden Stone the potential to further challenge the Internet wave. This practice of concentrating on arbitrage instead of getting involved in the company's management has also made many large venture capital companies relax their vigilance against Dianthin Stone, and began to approach it, starting with some seed companies and entering the next investment link. In this regard, Dianjinshi's answer sheet is quite excellent, which greatly satisfied the follow-up venture capital companies.
And those seed companies that will really become dark horses, such as Netscape, NVIDIA, Realworks, Amazon, and even eBay, which has just made angel investment, have entered the investment field of Yuanyang early, and they will conduct A round and subsequent investment, further Take equity in the hands of these future stars.
This kind of internal digestion has not yet attracted much attention. First, these seed companies are too trendy, and even veteran Silicon Valley venture capitalists are a little unsure of the context. It is better to wait for their development and participate in the B round and even pre-IPO investment in the future; It is because Yuanyang's business scope is mainly stocks and futures, not venture capital, and there is little relationship between them, and there is no need to overreact.
Such an investment environment is naturally unique for Yuanyang, but more and more capital expenditures have caused a short-term capital chain tension within the fund.
After two years of gains in futures, stock market and Mexican exchange rate in 1994 and 1995, Chen Yuanming has received as much as 1.7 billion US dollars, but this kind of income is not a net income on paper. The same heavy shackles. In the United States, there is a big stick called "capital income tax". Since 1993, short-term capital gains of no more than one year will be subject to a tax of up to 39%, while long-term capital gains of more than one year will also face 10%-28% tax rate. This rate will be adjusted in the next few years, but it is still a very painful existence.
Due to the urgent need for cash in the initial stage and the lack of reasonable tax avoidance methods, Chen Yuanming made a lot of blood. After Yuanyang Fund registered an offshore company in the Cayman Islands, this high tax burden was slightly relieved. But money must be used to generate money, and various investments are still the focus of Yuanyang.
With such tax restrictions, long-term investment will inevitably replace short-term investment as Yuanyang's main business. Therefore, in addition to investment in China, venture capital and a small amount of futures, mergers and acquisitions, long-term holding of stocks is the most critical point. At this point, Chen Yuanming still believes in the words of Warren Buffett.
"If you can't hold a stock for ten years, don't think about holding it for ten minutes."
Of course, there may not be many people who have heard this sentence today, but any financial practitioner is familiar with the concept contained in this sentence. If you can buy a stock at a low point and confirm that the company has good long-term performance, then holding it for the long term is the way to maximize your profits.
It's just that for many people, how to choose such a "long-term good" company is a big question. Everyone knows how to buy low and sell high, but no one knows whether the current position is the high point of the stock, or whether it continues to rise and adjust and fall back. Therefore, those who can invest like Buffett will always be in the minority.
But for Chen Yuanming, "Which company will always go up" is no longer a secret.
American Express, Coca-Cola, Wal-Mart, Procter & Gamble, Johnson & Johnson... Such large groups will expand rapidly with the take-off of China's economy and the rapid expansion of cross-border business. In order to increase financing, they will also continue to split stocks or Expansion, the stock price will also rise with the company's development. Each of these stocks is trading at relative lows these days, and it's simply perfect for the long-term.
Therefore, while investing in the potential stocks of Nasdaq, the New York Stock Exchange is also an existence that cannot be ignored.
With such an investment direction, Yuanyang's funds are naturally divided into several large pieces. The investment in mainland China and Hong Kong spent nearly 120 million US dollars, and the venture capital in cooperation with Dianjinshi spent 150 million US dollars. In order to integrate the Eagle's Nest Alliance, it also spent about 70 million US dollars. Nasdaq and NYSE Those more than a dozen potential stocks have steadily invested 300,000,000 to 400 million funds, and the remaining money will be involved in next year's copper futures war and mining acquisitions... Even if these funds can generate hundreds of times of profits in the next ten years, far Water also cannot quench thirst.
The most critical point is that several industrial companies in North America need to expand their capital again.
Although the domestic VCD industry has developed rapidly and the international DVD industry has also begun to exert its strength, Feiyan is still in the stage of huge profits, but the change of research and development direction means huge investment. Today, when the products are not on the market, their profits are not enough to let people sit back and relax. Zero hour company can only rely on the profits of patents and chips, while Eagle's Nest has begun to increase mergers and acquisitions of game studios. Everything costs money, but where does this money come from
The battle line suddenly shifted from the touchstone to Feiyan. Today, foreigners have occupied the vast majority of the management team of Feiyan in North America. After all, Chinese Americans are not yet dominant in the executive group in the United States, and these people are proficient in the management of the American market. Talents can provide very effective help for the advancement of the company.
However, on the issue of lack of money, there are differences of opinion between China and the United States. In the United States, the unified opinion of high-level officials including Yan Qiaosen is public offering, that is, public offering. Chinese researchers like Meng Lisheng are extremely vigilant about the stock market and even Wall Street.
Regarding this question, Chen Yuanming is actually quite swaying in his heart. After all, the Internet bubble will reach its peak in 5 years. At that time, the Nasdaq will plummet, and all stocks related to the computer industry will fall wildly. Countless technology companies are in this catastrophe. Retired sadly. If they don't go public, their ability to resist risks will be enhanced several times. If they go public, whether it is Eagle's Nest or Zero Hour, it is difficult to predict the impact at that time. At the same time, after going public, it means dancing under the baton of Wall Street. If the profit cannot meet the satisfaction of those bloodthirsty crocodiles, Wall Street's evaluation will drop, the stock price will drop immediately, and the company's development will be curbed.
But not going public, but relying on loans or other means of financing, is obviously a violation of the US market. After the official establishment of the DVD standard, these three companies have a very good reputation today. Many investment banks have also contacted Feiyan to become their listed underwriters.
Both positive and negative choices are in front of us. After several days of high-level meetings and communication with News Corporation, Chen Yuanming finally made a decision. It is not a smart way to always avoid the tiger. Now that you know that there is a huge trap on the road ahead, you should use this pit to seek greater benefits for yourself.
In the final analysis, listing is still the only way for these companies to go public, but choosing how to go public and where to go public is the most critical issue. In the end, the underwriting company Chen Yuanming selected was not the second echelon such as Merrill Lynch and UBS, but the only king in the US investment industry now and in the future: Goldman Sachs.
(End of this chapter)
The author has something to say: Emma, today's chapter is dead QAQ
If you have any questions, don't poke me (hold your head), I really do my best...
It means that there were a lot of replies yesterday, thank you for your support >_
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Yun Fei threw a rocket launcher
A landmine was thrown before the night was cold
azure fantasia threw a mine
Alu threw a mine
LC threw a mine
Yun Fei threw a rocket launcher
Faye~! Tossed a grenade
Haggie threw a mine
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Thunder threw a mine late at night
mir threw a mine
Miss Ben threw a grenade
Chihi threw a mine
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Yun Fei threw a rocket launcher