Secret behind the venture LED industry's wishful thinking"

Traditionally, venture capital is invested in the research and development of high technology and its products which contain the risk of failure, so as to promote the commercialization and industrialization of high-tech achievements. But there are venture capital institutions in the project to choose another path, embarked on a different from the traditional venture capital road......

Intel, apple, Google...... Behind the impact of this era of technology giants, as an innovative technology enterprise incubator venture capital institutions (VC/PE), such as Sequoia Capital, KPCB and Anderson Horowitz fund, etc.. As the last century 90s foreign venture capital institutions have entered China market, and Sina, Tencent, Baidu and other Internet companies have landed in the capital market, "angels", "GP/LP" and other terms are gradually known.

Followed by national subsidies to run

Generally speaking, the whole process of venture capital institutions to operate the project includes four stages, that is, fund-raising, investment, management and exit. For venture capital institutions, how to choose the right project is the focus of its consideration.

"The choice of investment projects, we prefer the countries' 12th Five-Year 'planning to support key energy conservation and environmental protection, new generation of information technology and other strategic emerging industries, and the industry is expected to form the core competitiveness of the company. Such projects in line with the trend of economic restructuring and upgrading, to enjoy some financial subsidies and other concessions, exit expectations are also relatively optimistic. "The combined force of Qingyuan Cci Capital Ltd venture investment director Jiang Yu said, should pay attention to the flow of investment projects.

In the LED lighting industry as an example, in recent years, the semiconductor lighting lamp LED bidding "12th Five-Year" planning and other favorable policies frequent, released in 2012 "national basic public service system of" 12th Five-Year "plan" proposed to arrange 2 billion 200 million yuan of subsidies to support the promotion of energy-saving lamps and LED lamps. For a time, the railway investment gold have settled in the LED industry.

"When we saw a start-up company in LED lighting industry, on the one hand, the government industrial policy under the guidance of the financial subsidy has a substantial positive to enhance the performance of the company; on the other hand, the enterprises in the listing also has comparative advantage, conducive to investment projects after the exit value of cash. Insiders said a PE agency.

According to statistics, only in the first quarter of 2012, there are Mao Shuo power, rectangular lighting, poly fly optoelectronics and other 8 LED companies to get listed or will be off, which is more than the total number of Listed Companies in 2011 LED. Ahead of the layout of LED enterprise, Cowin venture, YOFC baoteng investment PE also earned pours.

Hit group analyst Li Ling said that although the government subsidies are an effective way to support the development of venture enterprise, but the venture should focus on the study of its profit model in the investment, which mainly rely on government subsidies and government orders to obtain future business is relatively large.

For the greater impact of the policy of the industry, we will carefully analyze the size of government subsidies accounted for the size of the company's revenue. If more than 70% of the profits from various forms of government subsidies, indicating that the company's limited profitability, generally do not consider such enterprises. "The PE said, even just rely on policy oriented projects, venture capital will be thinking of the herd, the future of the industry is facing overcapacity problems.