Investment plunged 80%: the cold winter of the venture capital industry under the epidemic is even colder
Original title: Investment volume plummeted 80%!
Under the epidemic situation, the cold winter of the venture capital industry has become even colder. Source: Panoramic Finance’s sudden epidemic has made the “cold winter” of the Chinese venture capital industry colder and gradually.
．．．．． From 2018 to 2019, China’s venture capital industry is experiencing two years of “fever fever”. Investment institutions have closed the fundraising and exited the dilemma.
After two years of reshuffle and calm, a large number of investors define 2020 as the “year of inflection point”, and it is expected that the venture capital industry will bottom out and pick up.
However, the epidemic that started before the Spring Festival made the “cold winter” even colder, which made all investors unexpected: almost all proposed investment projects clicked the “pause button”, the fundraising plan was stranded, and the venture projects invested were in danger.Exit channels such as IPOs are suspended . The cold winter of the primary market is being forced to extend.
”The amount of funds raised this year and the growth rate in 2019 will definitely be significantly reduced. Many GPs (general partners / managers) are actually unable to raise money, and the cold winter of the venture capital industry will definitely continue.
“Chen Wei, chairman of Oriental Venture Capital, a well-known venture capital firm, said that it is recommended that startups make at least 3-6 months of the worst plan,” the most important thing is to survive. ”
However, the crisis process is accompanied by the peers. Under the epidemic, the new economy represented by fresh e-commerce, remote office, online medical care, online education, etc. has suddenly ushered in the wind, and the venture capital institutions that have been deployed in advance must be cold”Luck” on the extension line.
Fund-raising and investment are all funded according to the “pause key”. Investment, post-investment management, and exit are a complete life cycle of the venture capital industry.
Let’s start with fundraising. According to the Wind database, the number of funds raised by Chinese venture capital institutions in 2019 is only 602, and the funds raised are about 2317.
3.6 billion, almost a cliff-like decline.
In 2018, the number of newly raised funds exceeded 2,400, and the total amount of funds raised was as high as 11,508.
700 million; in 2017, it was 3751 and 11040.
200 million yuan.
Even in 2010, this number was 710, 3142.
900 million yuan.
This means that the scale of funds raised by venture capital institutions in 2019 exceeded the decline by more than 84%, and the number of newly raised funds also fell by nearly 80%. The problem of difficulty in raising funds for the Chinese venture capital industry continues.
Money is getting tighter, and venture capital institutions are becoming more cautious and critical of investment projects.
According to the Wind database, in 2019, the cumulative number of projects invested by venture capital funds was 5,692, and the cumulative investment amount was only 6,781.
3 ppm, an average annual rate of nearly 50%.
From fundraising to investment, the venture capital industry has undergone a cold winter shuffle.
Before the outbreak, a large number of investors predicted that 2020 might be a year of bottoming out, and the data scale also showed a rebound.
According to Wind data, in January 2020 alone, China’s venture capital funds completed an investment of US $ 115.5 billion, an increase of more than 50% from the previous quarter.
However, the sudden outbreak stopped the rally abruptly.
As of the 21st, the investment amount completed in February 2020 was only 81.
2 trillion, only 79 investment cases, the venture capital industry has almost suspended foreign investment projects.
The amount of investment completed in February last year was 426.
500 million US dollars, the number of investment cases exceeded 380 cases, a decline of more than 80%.
Zhao Yangbo, vice president of investment of Qilu Capital, said that the new investment projects have basically been suspended. During the epidemic prevention and control, new investment projects are difficult to advance because there is no way to do in-depth offline communication or even enter DDSurvey), the main intensity will be put on the post-investment.
All kinds of evidence show that the epidemic is prolonging the cold winter of the venture capital industry.
Military and Thai joint ventures have conducted a study of 40 investment institutions, and about 50% of investors have stated that they will continue to maintain a contraction strategy based on 2019.
Faced with the passive shrinkage of investment plans of venture capital institutions, perhaps the saddest is the startup companies waiting to be fed.
Since February 2020, a number of entrepreneurs have reluctantly stated that due to the suspension of the funds raised by the new fund, some venture capital institutions have issued notices to them to suspend capital injection, which has further reduced the necessary state of funding for enterprises.
Start-up companies that have experienced a crisis in the capital chain are mainly offline education, catering, tourism, retail and other industries. Affected by the epidemic, business operations have almost stopped, cash flow is almost zero, surrounded by survival, once failed to survive, venture capital institutionsInvestment projects will also end in failure.
The planned IPO project has also been suspended. In addition to raising funds, another major source of funding for the venture capital industry is the project exit.
Prior to the outbreak, investment institutions with rich projects in their hands had high expectations for the exit side in 2020.
At the end of 2019, Xiao Bing, CEO of Dachen Venture Capital, had predicted that in 2020, it would be the historical peak period for venture capital project exits. Under the healthy competition of science and technology board and GEM registration system, the number of IPO projects in 2020 will acceleratevery fast.
For venture capital institutions with sufficient project reserves in their hands, it will be a very good news.
However, this expectation may be delayed.
Affected by the epidemic, the IPO progress in 2020 is ongoing.
According to Wind data, more than 133 companies ‘listing applications in Hong Kong are being processed, and 159 companies’ listing applications have not progressed, and due to the impact of the epidemic, many companies have chosen to replace the listing plan.
At the same time, the A-share IPO issuance review meeting has been suspended for more than 30 days.
On February 13, 2020, the number of companies in the IPO queue was 428 (excluding the science and technology board), including 161 main boards, 79 small and medium-sized boards, and 188 GEM boards.
In addition, affected by the epidemic, sponsors, and audit institutions’ IPO counseling work is also expected to be replaced, and the IPO progress of companies planning to list in 2020 will follow.
However, it is worth mentioning that the issuance of new shares has been affected by the epidemic again. The CSRC has approved the IPO approvals of eight companies for three consecutive weeks.
At the same time, since February 3, 18 new shares of A shares have been successfully listed.
Although the IPO counseling and review of business progress has been temporarily affected by the epidemic, it is not yet possible to determine the overall IPO rhythm in 2020.
Looking back at the SARS epidemic in 2003, according to wind data, a total of 68 new shares were issued and listed in 2003, the same as in 2002, and 50 new shares have been listed after June 2003, and the end of the fight against the SARS epidemic was in 2003.May each year.
This means that after the end of the SARS epidemic, the progress of A-share IPOs has accelerated significantly.
BOCI Securities expects that initial public offerings will improve in the first half of 2020, but with reference to the acceleration of initial public offerings after the end of the SARS epidemic in 2003, combined with the overall reform of the internal A-share registration system, the general background of direct financing ratios has been raised, so the amount of funds raised isWill fall.
It is foreseeable that under the epidemic, the pace of quitting venture capital projects seems to have been delayed and will not cause it.
But for specific investment projects, the test brought by the epidemic will be more severe.
The operation and financial status of some startups may be affected by the epidemic, and the project is expected to shrink, and the IPO will fail. This will also test the venture capital institutions’ post-investment management capabilities.
At present, the support given by most institutions is mainly focused on the docking of industry resources and sorting out local support policies.
In addition, support is provided in terms of cash flow.
According to Dachen Ventures, all investees are required to report the latest situation every week, monitor closely, pay attention to project risks, and provide the think tank and support for the investees with the resources of the Dachen Ecosystem.Classes, live sharing, etc.
Under the epidemic, they have become a “lucky” crisis. They have always been with them. In every dangerous conflict, new opportunities have emerged against the trend.
The outbreak was no exception.
The epidemic situation is controlled by the entire national defense, offline life, and the consumption scene is pressed with the “pause button”, while online medical care, online education, fresh e-commerce . ushered in the wind.
Oriental Weihai Chairman Chen Wei said that the epidemic will have a certain impact on the pace of investment in the first half of 2020, but 2020 may be a “good year” worth investing in.
Taking online medical care as an example, the epidemic has swept the country, offline medical resources are tight, and the risk of hospital infection is high, so the demand for online medical consultations has exploded.
Among them, Ping An Good Doctor APP registered users increased by nearly 10 times, and the number of conversion visitors during the epidemic was as high as 11.
In addition, the number of registered users of Baidu “Ask Doctor”, Dr. Chunyu, Dr. Elephant, Dr. Lilac, Medical Union, Dr. Penguin, Weiyi, and Good Doctor all increased geometrically.
Hu Xubo, a leading partner of Qiming Venture Capital, said that after the epidemic, China’s medical service system, public health service system, and new drug research and development will be promising.
As an investment institution, you can support innovative companies by investing to participate in this progress.
On the first day (February 10), Songhe Capital released recruitment information and planned to recruit investors with collective professional medical and health 杭州桑拿网 background, covering positions from investment director to partner.
In addition to online medical care, 200 million students are attending classes at home, which has led to the outbreak of online education. The traffic of online education companies is estimated to have an explosive growth.
Taking the homework gang of the free live broadcast class on February 3 as an example, in just 3 days, the number of people participating in the free live broadcast course nationwide exceeded 10 million.
According to the help of the homework, the morning of the 8th day (February 10), the number exceeded 20 million, which is the highest user index in the history of the homework helper and the highest ever record of online education live classes.
On average, the capital market is also very crazy. In June of this year, the GSX 杭州桑拿网 listed on the US stock market (GSX) has soared by more than 431%.
Since 2015, 130,000 companies have been established in the field of online education in China. In 2019 alone, more than 60,000 online education-related companies have been set up, and investment institutions have also poured in.
The same explosive growth has also occurred in fresh online e-commerce, far beyond the office and other online fields, and venture capital companies that have been deployed in advance are undoubtedly the biggest winners.
Where the traffic gathers, all are the outlets for capital chasing. In the future, capital will continue to flood into industries that have exploded against the trend.