In this forum, the organizer will invite experts in capital operation to study and analyze some hot and difficult issues encountered by franchise chain enterprises in refinancing, and the relevant content will also be webcast through the online video of Business Opportunity Online, which will also be reported in detail in the later issue of Business Opportunity Online magazine.
Host: Let's introduce the guests attending today's forum-
Investor Representative: CITIC Capital King; Hu Xiang, Managing Director of Yidu Junhua Capital Co., Ltd.; Zhang Yongqiang, Partner of Zhongsheng Investment Group Co., Ltd. and Investment Banking Department; Peter, representative of the Russian pragmatic cooperation group in China; Wei Jingyang of United Securities Co., Ltd.; Angel investor Zhang Chen Jingwei; Chen Tao, Chairman of Shen Yuan Group; Qiu Jiawei of Zhongfu Investment; Shangguan Hong of Chengdu Borui Investment Holding Group Co., Ltd.; Guo Jin Investment Consulting Co., Ltd. Zhang Xin; Huaxing Capital Feng Li; Cui Chuanzhen, Director and Executive Vice President of Guanghua Tiancheng Investment Co., Ltd.
Let's give them a warm welcome!
Moderator: I'd like to introduce the representatives of financiers who bring high-quality projects. They are: Gaobeidian municipal government delegation led by vice mayor Bai Jiwei (including government secretary-general Zhang Runxing, deputy director of government office Liu Guanghui, head of Xinqiao Township Zhu Baoqing, director of Transportation Bureau Li Zilong, and general manager of Real Estate Development Co., Ltd. Wei Qiang); Guangcheng Song, General Manager of Yongkang Dental Chain; General Manager of Beijing Department of International Laundry Chain; Lei Jiannan, General Manager of Xi 'an Jin Jian Technology Company; Zhao Qijing State Grid Alliance Technology Co., Ltd.; Hengli and Qise Guanghua (Beijing) International Cultural Development Co., Ltd.; Xinyubo, Hanor Shoe Beauty Chain Company; Hu Jianqiang Jing Hutong Ye Wei Technology Co., Ltd.; Big event coffee chain wearing skills; Yan Long, Beijing Global Clothing Trading Co., Ltd.; Liu Jianlin Practice Erffa Education Consulting Co., Ltd.; Hong Kong Shi Jia Group Co., Ltd. (Fu) Zhang Yacai; Beijing Haizhihong Technology Co., Ltd. Xu; Li Wenguo of Cangzhou Yunlong Printing Materials Co., Ltd.; Liu Jianxi, project leader of Beijing direct selling catalogue; Liang Yu, Director of Investment Cooperation of National Emergency Rescue Service Co., Ltd. ..
Please welcome them with warm applause again!
Male Moderator: In addition to the representatives of the investment and financing parties, representatives of the organizers of this forum-China Net Media Group and the organizer-Business Opportunity Online Magazine were also present. They are Mr. Zhang Zhige, Executive Director of China Internet Media, and Mr. Hai Kuo, Editor-in-Chief of Business Opportunity Online magazine of China Internet Media.
Next, let's talk about the opening speech of Mr. Zhang Zhige!
Zhang Zhige: Dear Mayor Bai, distinguished guests, good afternoon!
First of all, on behalf of China Net Media Group, Business Opportunity Online (Beijing) Network Technology Co., Ltd. and Business Opportunity Online magazine, the organizers of the 2nd Frontier Project Investment and Financing Matchmaking Forum, I would like to express my most sincere thanks to all the delegates who braved the cold and pulled away from their busy affairs to attend this forum!
Business Opportunity Online (Beijing) Network Technology Co., Ltd. is a high-tech enterprise established by China Network Media Group in 2004, aiming at providing brand investment, franchise investment, cooperative investment and agency investment services for the majority of investment enterprises. At the same time, it also provides entrepreneurial information, entrepreneurial projects, entrepreneurial guidance, entrepreneurial exchanges and other entrepreneurial needs services for a large number of investors and entrepreneurs.
Www.28.com is an enterprise investment promotion industry portal established by Business Opportunity Online (Beijing) Network Technology Co., Ltd., aiming to build an online home for entrepreneurs and investors.
After four years of steady and efficient development, Business Opportunity Online has established strategic cooperative relations with many well-known Internet companies such as Sina, Sohu, Netease and Tencent, as well as China Electronic Commerce Association, internet society of china, China Chain Store & Franchise Association and National Market Integrity Construction Organizing Committee.
Entrepreneurs and investors have always been a group that continuously pays attention to online business opportunities and provides them with personal services. Holding "New Project Investment and Financing Matchmaking Forum" and other activities still serves all kinds of customers who have good cooperation with the company, including emerging, fast-growing small and medium-sized enterprises or individual entrepreneurs with huge market potential but weak financial strength, as well as various venture capital institutions, private equity funds and angel investors, aiming at creating in-depth exchanges and in-depth communication for all parties.
Finally, on behalf of China Net Media Group and myself, I wish this forum a complete success, and both investors and financiers can find their "favorite object" and finally achieve mutual benefit and win-win!
thank you
Moderator: Thank you, Mr. Zhang Zhige, for your wonderful speech. For this event, Business Opportunity Online, a subsidiary of China Net Media Group, will follow up the event in the later period. As a print media, Business Opportunity Online strives to build a media platform for all-round service to venture capital groups, relying on the website of -www.28.com, an extension of China Network Media Group.
Please welcome Mr. Hai Kuo, editor-in-chief of Business Opportunity Online magazine.
Haikuo: The Spring Festival is coming soon. Everyone has a lot of things to do, and I am deeply grateful for coming to this docking forum.
In fact, our docking forum is a particularly practical forum for enterprises to do practical things. I used to work in a very small enterprise, making ice cream processing in my hometown, so I especially understand the business owners of some small and medium-sized enterprises, who spend every penny on the cutting edge in the process of operation, hoping to spend every penny on the cutting edge.
Our investment company's time is also precious, and they can't waste precious time on worthless projects. In the process of making magazines, we have contacted many good companies and know which ones are excellent and which ones are worth investing in. Some companies will say that they don't know if they can dock, otherwise they will make a trip in vain. This mentality is actually wrong. I don't think we should have this idea. Even if the docking is unsuccessful, we can learn all the good ideas of these enterprises, so that we are not far from the day when we really go public and become bigger and stronger.
Everyone is reading our magazine, and they are also concerned about joining the chain industry. We spread this information to everyone in an interactive way through the Internet and television. On the one hand, in the past two years, venture capital companies have paid special attention to these enterprises, such as Little Sheep and Yongkang Dental, and they have all received financing. With capital, we occupied the national market more quickly. In addition, we are very concerned about this and have made many reports on our website and magazines. The current market is "the one who gets the channel gets the world". Nowadays, chain enterprises, such as Yongkang Dental and Global IELTS, have so many branches all over the country that as long as there is one branch or branch, it will occupy the channel; Like our traditional enterprises, it takes a lot of time and may not be able to occupy the market. There is also a foreign pharmaceutical company. What about their sales staff? That is, there is a satellite positioning system on the mobile phone, which can control the itinerary. The company will know whether the salesman has been to our store. It can be seen that it is difficult to occupy the channel, as our KFC and McDonald's said, "They are not doing business, but doing real estate, and they have occupied the best position", so I think joining the chain industry is a real gold industry. If our investors invest in this industry, we can really achieve a win-win situation.
Finally, I quote the boss of an investment company as saying, "What you do is a cash cow. If you keep shaking and have money, you can taste the benefits of a cash cow for a long time. " Thank you!
Male host: Thank you, Mr. Haikuo!
Moderator: Next, we will enter the main part of this forum. First, investors will give a keynote speech on "Venture Capital and Enterprises: How to Win". The second is the docking part, that is, the representatives of the financiers introduce their respective projects, and the representatives of the investors make comments. Finally, according to the opinions of investment representatives, the organizing committee of the forum selected three projects from many projects and awarded the "Most Concerned Venture Capital Institution Project Award".
Male host: Please give a warm applause to our first speaker today-the managing director of Yidu Junhua Capital Co., Ltd. If you have any questions, you can raise your hand and speak.
Hu Xiang: Good afternoon, leaders and friends. Yidu Junhua is an investment bank focusing on M&A, investment and financing services. It is its responsibility to help enterprises succeed and promises to provide the best investment banking services and the most professional investment banking services for enterprises. In the past time, we have done many projects to help many enterprises do mergers and acquisitions and financing, so the organizers asked us to talk about how to do a better job in financing enterprises.
Financing is a very professional and complex system engineering, and there are different stages and forms of financing. For example, early-stage enterprises may be relatively suitable for angel investment, high-growth enterprises are suitable for venture capital, and companies that need to go public need to go public for financing. Here, I may mainly focus on venture capital activities and share some of my experiences.
Mainly talk about two aspects: first, what kind of enterprises are suitable for finding venture capital? The second is how to operate in the process of finding venture capital.
First of all, what kind of enterprise is suitable? First of all, it depends on the operational characteristics of venture capital. Generally speaking, they have two channels: one is listing, and the other is merger or liquidation. For them, if the target enterprise has no possibility of listing or is sold at a relatively high price, they are generally unlikely to invest, and they require a particularly high return on each project. They hope to have at least twice or even ten times the return in the later stage, and may hope to have more than five or six times the return in the early stage. Venture capital will invest in many enterprises, but many enterprises may fail, resulting in their inability to recover costs, so they will pay more attention to a single enterprise.
We should examine whether the enterprise is suitable from several aspects: First, the market scale. If our enterprise fails to reach the market scale of several hundred thousand, it is not in conformity. At least make one with great development space. Secondly, from the perspective of business model, enterprises will also be required to have their own unique business model and their own unique competitiveness, instead of saying that you are also a good enterprise and I am also a good enterprise. Everyone is similar, and it is difficult to meet the requirements of investors. You should have a high-speed growth, on the one hand, your technological innovation and breakthrough lead to your growth, on the other hand, the innovation of business model. China should innovate more business models. If we all compete in the Red Sea field, we can achieve the first and second, and then we can achieve a very high financial goal. Finally, in terms of competitiveness, we should also explore the unique competitiveness of enterprises and make it difficult for competitors to copy and compete. This ability includes the ability of the team. If the team is recognized by the venture capital, then the team is also very capable. The first is to look at the team, the second is to look at the enterprise. The advantage of the team is also the judgment and advantage of the operation project. The team is important, but the project is also good.
Let's talk about how to invest first, otherwise the financing will be smoother. The financing process of venture capital is generally divided into several stages: first, the self-preparation stage; The second stage is communication with investment and financing companies; The third stage is the operation stage, including investigation, including the other party drafting an agreement, setting up a company and restructuring; The fourth is the signing and subsequent delivery stage. The first is the preparation stage. I always tell our customers that if you are not fully prepared, don't go out to meet investors easily, because you won't have many opportunities. If you are not ready, you may waste your chance. If a project is in the market, because the circle of investors is relatively small, if you put it in the market for a long time, every investor who does it will feel that your project is average and may not be successful.
This preparation is very important, including several aspects: firstly, the positioning, investment ability and competitive value of the enterprise should be deeply explored and displayed in the form of a clear and simple business plan. I have read many business plans, all of which may be in the form of WORD. They wrote for a long time, many pages, not necessarily useful. The reason is that venture capitalists have to look at hundreds of projects every year. If it's a WORD version, they won't have the patience to finish reading it. The best form of business plan is PPT, the shorter the better, a few pages or more, the shorter the better. You are here to communicate with him, not to write this clearly, the organizational structure of our employees and so on. It's not necessary, just to make him interested in talking to you. Business plan is a process that needs to be refined repeatedly. It can be refined into several PPT and its most important value point is competitiveness.
For example, the first is what I have done, the second is what I have achieved, and the third is what I will achieve. If investors think your goal is good and worth investing; Second, your foundation and resources are already OK; Third, your industry positioning is also very good, and I am willing to sit down and communicate with you. I don't want how much money I hope to get in the plan. I don't need to write about employees and organizations, because this is something that can be exchanged in the future. Business plans should be as precious as gold.
In addition to the business plan, it is also crucial to summarize one or two sentences. For example, if you meet an investment partner in the elevator, what will you say? I have a project here. One or two words a minute makes people uninterested. This matter needs our work. These words may be important in any occasion, elevator or meeting. This is a technical problem.
In addition to refining a sentence and refining a PPT, we must also do a good job in financial valuation.
Financial valuation is a very artistic thing. There are many ways to manage money. You can evaluate the value of an enterprise, including the evaluation of net assets, including the comparison of price-earnings ratio. These are always for reference. Investors will judge your competitiveness first, and then look at the financial valuation. A mature enterprise has good cash flow and good forecast. You can make a discounted valuation of our enterprise by referring to the estimated P/E ratio of some listed companies, or refer to the valuation of the total financing amount of similar enterprises. For an earlier enterprise, my performance can't be well reflected. This process may be a bargaining process with investors. I must know how much it costs to achieve a certain goal. This goal is not to go public directly, but to need $6.5438+0.2 billion. If I hold this platform higher, I may have a better chance.
The second is how much equity I am willing to sell. Generally, financing companies want to be between 20% and 30%, or they may be willing to take less, 10% or 5%. Early companies may be willing to help you, so too few shares are not enough. They want a percentage. We need to make some preparations, and then we can raise funds.
The second stage is communication with investors. I see that many companies send emails with PPT. I suggest you find an investment consultant to help you with this job. I also advise my clients to control the pace in all aspects of communication with investors. I mean, how many companies talk about the first round, how many companies talk about the second round, and everyone talks about key terms. I hope our customers and investors are equal. I generally advise customers to talk about their core values within 1 or 2 minutes in the first round of communication, and then we will discuss it slowly.
From an angular point of view, investors may lose patience, and you can't answer many questions satisfactorily. If we go smoothly, investors will show interest in more than one company, and they will give a key investment clause, which generally includes investment amount, shareholding ratio, option requirements, repurchase requirements, some arrangements for listing, and the amount of merger and liquidation. This clause is generally a general standard, and there will be many existing clauses in it. If enterprises need to merge and liquidate in the future, they will find that many problems will arise if they are not careful. If the terms are successfully signed, it means that you have determined your investment intention, which has no legal effect, but is exclusive to the enterprise.
Investors will do a legitimate net worth survey, and it is very important for enterprises to do this so-called investment structure problem. The investment structure is actually a very important and crucial issue, which is related to whether this matter can be done or not and how long it will take. The reason is that, for example, many foreign funds are generally impossible to invest in some scientific and technological projects, so we need to be very cautious in this regard. We have several considerations when choosing an investment institution. If you choose an investor institution listed overseas, you may choose some investors with rich overseas experience and many successful cases in overseas operation. Their funds are also foreign-funded institutions overseas.
If we want to list on A shares, we will choose some domestic institutions, but now many active institutions are overseas. Each structure still has various aspects, including recent policy factors, including the industry in which it is located, including future capital operation. I suggest that if the financing reaches this stage, we should communicate well with the relative institutional personnel and operate by ourselves. We can't say that 90% won't make some mistakes, which will be fatal. For investors' net worth survey, we hope that enterprises can supplement information and conduct net worth survey in good faith. If it goes well, we will finish the work soon. Investors will find lawyers to draft some financing agreements. If it is done in an overseas structure, it is basically English agreements, including share issuance agreements, shareholders' agreements and some articles of association and documents of companies established overseas. We also need to find some lawyers (China lawyers) to help with this work.
The next stage is the signing stage. Once the contract is signed, the matter is basically settled. Let's do some option value, make a lot of document agreements, and investors have to pay. If it is foreign capital, there may be problems in communication with the outside world and in the process of converting foreign currency into RMB. Generally speaking, if the communication with investors is smooth in the early stage, it is generally appropriate to spend one month, and it is possible to talk to many economists at the same time, which will help us control the rhythm and control our chips. Then from signing this letter of intent to the final delivery, it will take two months if it goes well, and it may not work for half a year if it doesn't go well.
If there are some problems during the investigation, it will also lead to this result. Basically, I also hope that if the enterprises here have this idea, we can communicate more in the future. Thank you.
Male host: Thank you again for your wonderful speech. If there are any questions, we will communicate after the meeting. Next, please welcome the second speaker today, Mr. Wei Jingyang of United Securities Co., Ltd.
Wei Jingyang: Hello, friends. Because I don't do related projects in the investment banking department of United Securities, but at present we are in the East Road of North Third Ring Road in Beijing, because we are responsible for some big customers, many of them operate in the secondary market, but there are still many projects that they want to participate in. Consider investing in some pre-bid project areas. Now we are also looking for some more valuable projects. Today, I also have a learning attitude. Especially just now, Mr. Hu talked a lot about investment. He spoke very well in every link, which is a lot of things he said in the screening project and is also very useful. These things are more specific in the market.
It is most important to have good projects and good investors docking projects. I hope to find better projects today, so that my good partner investors can invest and find some potential projects. Ok, thank you. Let's call it a day.
Male Moderator: The third speaker is Cui Chuanzhen, director and executive vice president of Guanghua Tiancheng Investment Co., Ltd. ..
Cui Fax: First of all, thank you all for listening to me here. It's cold outside today, but it's like spring here We are all sitting together, and the breath of spring is blowing on our faces. Our enterprises must be full of confidence in their own projects. We are making investments and paying attention to some very considerable ones that are better for investors and entrepreneurs. The global capital market seems to fluctuate greatly, affecting the global economy in some way. Today's data is GDP 1 1.4. Why do I say that? These things are very important for entrepreneurs and investors. If the stock market continues to fall, many investors' money will not escape, and investors' money will be even tighter. I have some data here for your reference. First of all, the number of listings has surged in recent years. In August 2006, the total market value of Shanghai stock market was 10666 billion, while 10 was 5,556.7 billion. Today, it is11340 billion yuan, and there are about 338 listed companies in Hong Kong. Whether starting a business, financing or listing, this is a realistic problem that any entrepreneur and entrepreneur need to consider. The first two also spoke very well. I think investors and investors have very equal status. There is no question of who is strong and who is weak. This is a win-win situation.
Global business opportunities all come from information asymmetry. Some good investors find good projects and some good projects find good investors. I believe that an investor with good quality and self-cultivation will be very polite to all financiers. Investors are also in business, just buying and selling the capital operation of enterprises.