霍玛丽：风险投资 企业的必修课

　　美国基石基金主席 霍玛丽

　　这是我第二次在亚洲资本论坛上演讲。在上一次演讲时，我提到过私募资金，也提到过在中国发展风险投资的重要性。联系到本次论坛有关知识产权的主题，我认为在中国发展风险投资的一个主要目的，是促进中国企业从模仿者转变成创新者。

　　中国的人才非常丰富，但是中国的公司在其初创阶段所需的起始资金却非常缺乏。

　　2006年1月到11月这10个月期间，国内外的风险投资者对中国的小公司的投资已近16亿美元，这比2005年全年的总额高出了60%。我非常有兴趣与大家分享关于中国风险投资发展的一些看法。

　　首先，中国很多风险投资公司的领导人曾是中国一些顶级公司的领导者，这些人从原来的非常成功的公司里退休，然后进入风险投资业，开始为其他的公司投资。例如，携程网的投资人进入了Sequoia风险投资公司，新浪网的首席运营官加入了DCM风险投资公司，搜狐网的总裁创立了SEARCH FUND风险投资，等等。另外一个主要的发展，是高科技公司在中国创立了自己的风险投资基金，比如IDG和英特尔，它们都有大量的风险资金投入到技术领域。这些公司带给这个市场的不仅仅是资金，还有技术。

　　更长远的发展将表现在中国风险投资的合伙方面。中国一些地方的风险投资者正在逐渐向国际合伙人发展，国际合伙人同时也在寻找中方合伙人。例如，联想与DCM风险投资共同筹募了2.9亿美元；在中国有着长久投资历史的IDG公司与Accel公司合伙，等等。而最让我高兴的，是看到了国际上一些大型的风险投资公司与中国一些基层的小风险投资公司携手。这些由精明的团队领导的中国的风险投资公司大有潜力，它们与国际上的主要风险资金整合起来，是具有里程碑意义的事件。这不仅是资金的结合，更是技术的结合。

　　许多获得风险投资的公司已经逐步在纳斯达克上市。越来越多的储蓄资金变成了风险投资，大量的资金流入这一领域。当然，中国的风险投资还处在初期阶段，只发展了一两年时间，今后有很长的路要走。

　　对于很多公司来说，吸引风险投资和私募资金仍然有很多亟待解决的问题。这些问题集中在如何为风险投资者提供重要的细节信息。很多公司在这个方面还没有准备好，甚至是不愿意提供这样的信息。但是，对于已经成熟的国际行业而言，因为资金数额庞大，有一系列需要进行策划和评估的内容。风险投资要对公司管理层进行评估，对公司未来的发展进行评估，另外，最重要的一点是，公司要符合风险投资商的投资方向的要求。

　　我从1995年开始探索在中国进行风险投资，一路走来，有很多坎坷，在信息沟通方面有很多的障碍。这种由信息透明度和信息质量上的欠缺所造成的信息障碍，对于金融行业来说是个致命的问题。有一些项目从一开始就有问题，有一些在中间会出现问题，还有一些甚至会在最后出现一个更大的问题。风险投资者会测试和观察所投资的每一家公司，看其能否按照既定的商业模式逐步达到目标。假设一个公司提出的年度目标是99%，而结果他们连50%都做不到的话，那么风险投资者就会重新评估这家公司，重新评估这家公司的首席执行官是否有能力实现他的计划，除非这种情况完全不在预期之中，或者完全不在该首席执行官所能控制的范围之内。

　　进行风险投资的评估，目的是确保投资公司与被投资公司获得双赢。这里面有大量的沟通要做。很多时候需要提供各种信息。与风险投资合作非常需要耐心、坦诚和透明度。

　　令人感到意外的是，很多想获取风险投资的公司在中途放弃了，而且他们最终都不认为是自己单方面放弃的。这些公司只是不愿意提供数据，不愿意回答问题，不愿意提供他们的账目，不愿意提供他们的合同，不愿意接受评估，这些都是非常致命的问题。这些公司总是责怪风险投资公司问的问题太多、不了解他们的行业或者根本没有诚意投资。事实上完全相反。我见过一些公司，仅仅因为这些原因，轻易地放弃了获取高达1000万美元投资的机会，而这些资金对他们来说是至关重要的。

　　中国正在发生巨变。我们都参与了中国的发展。我们担负着不同的责任。我只是想提供这样的信息，从而使被投资的公司能够与风险投资公司深入合作，从初始阶段、整个的对接过程、最后资金到位直到项目最终完成，都能够平稳地合作。

　　我认为这个过程的最重要的意义在于它同时是一个教育的过程。中国的企业家教育不是在商学院里能够完成的，很多东西也不是在一些大公司里工作过就能学到，只能够从这种过程当中学到。要集中精力准备为投资方提供数据、信息、预算，要正确认识和对待公司未来的预测、公司的估值、公司市场竞争力的评估。能够参与这样一个过程，我认为是一种机会。

　　今天我来到了揭阳。这里有很好的生态环境。这里风景美好，空气清新。如何让揭阳这样的地方从中国其他的地方中脱颖而出？我知道这里正在进行着基础设施建设。我也想提一个建议，在揭阳建立一个公司化教育基地，从而使揭阳成为这方面的领先者。我们可以设想一种设计得非常好的教学模式，比如可以设置许多为学员量身定做的小型课程，每三到五天完成一个，可以与高尔夫球比赛活动结合在一起。这些课程会提供非常基础的知识，让年轻的创业者和小的公司从中受益。这也可以给揭阳带来一种巨大的区域品牌效应，使它在商业培训方面成为中国的一个品牌，从而吸引更多的大公司来参与这个项目，共同完善和使用这些培训设施。未来的揭阳高层领导都可以接受这些培训，获取结业证书。这将进一步推动揭阳的发展，不仅可以推动揭阳的咨询业，还可以推动揭阳的培训业、投资业的公司发展。人们都愿意到环境美好的地方去。揭阳有这样好的生态环境，等到机场建成之后，这里的基础设施就基本完备了。将来人们想接受培训，想办会展，或寻求咨询，就会想到揭阳；想找适合投资或者合作的公司，就会想到接受过揭阳商业培训的公司。这就是我所说的品牌。

　　我大胆地提出了这么多有关揭阳未来发展的设想，都是我个人的想法，可以作为揭阳众多选择当中的一个。我热切地期盼它能够成为现实。

　　Venture Capital: A Required Course for Enterprises

　　Rose-Marie Fox

　　It is my privilege to be invited to address you again on the Topic of Private Equity Funding. I thank Ambassador Qiu - The Asian Capital Forum and the city of Jieyang for their kind invitation.

　　When I last spoke with you in Shenzhen I expressed the need for China to develop a home grown Venture Capital source of funding for entrepreneurial companies - that are too small and too early stage for the typical large international private equity fund to finance - only in this way can China truly move from "imitator" to "innovator". The talent pool was here but the early stage funds were lacking. I am happy to say that this is happening with great speed.

　　In the first 10 months of 2006, January to November, Venture Capital - both local VC and International - Many in partnerships together - have invested $1.6B in entrepreneurial ventures - a 60% increase over the entire year of 2005.

　　Private equity for more established companies also continued its bullish advance - with $11.8B from November to December - funding 111 companies - which is also a record high.

　　Foreign funds provided capital for 80% of the transaction - but the 20% shows a great progress for the local firms and great future for the Chinese R&D and Innovation.

　　Let me focus a little on the development of the local VC because I find it very interesting and I hope you will too.

　　First it is being lead by the retired leaders of China's most successful tech companies that we now see listed on NASDAQ: Founder of CTrip - Sequoia Capital; COO Sina.com - DCM; President SOHU.com - set up VC fund - "Search Fund"; Driving force of ChinaNetcom - Set up a China broadband fund. The point is it is being driven by the best of China's leasers in tech.

　　The major Chinese tech companies such as Legend are taking the lead following the model of Intel and IDG both which have long established VC funds and which also have strong roots in China. Corporate VCs are well equipped to provide a combination of capital with technical and business expertise to the young tech company and access to markets partners out of reach to the young company.

　　And there is a great development of partnering of the Western VC firms with the Local Chinese VC's giving much greater sources of capital and both sharing their deep expertise. Legend Capital partners with DCM and raises $290 Million in record time oversubscribed; IDG with long history in China with Accel Partners.

　　And what is really the BEST News - this partnering has also reached to the grass roots level for VC firms founded by a few smart Chinese teams in each firm now joining with a major International venture funds. QIMING VC added a director from Intel Capital and partners with Ignition Partners from US - with Ignition directing $200M to China VC (Ignition was formed by a group of former execs from Microsoft). GSR (Gold Sands River) Ventures founded by 3 Chinese partners joined with Mayfield Fund from US. Northern Light Venture Capital - 2 Chinese partners founded, partners with New Enterprise Associates and Greylock both established US VC funds.

　　These are thresholds events for China to point to a new industry of VC grown in China supported by the expertise and invested capital of established international VC's. This is just the beginning and it points to tremendous positive access to value creation capital for the fledging Chinese R&D and innovative entrepreneurial companies.

　　It still has a way to go but with its success as demonstrated by more listed companies on NASDAQ and other exchanges including Shanghai and Shenzhen and Hong Kong - more of the savings capital in China will transfer to investment capital. Then you can only imagine what China can do with this capital and VC expertise guiding and fueling its innovative companies in all areas from information, medical, environmental technologies.

　　Now there still are impediments to many companies being able to attract and close a funding with a VC or a Private equity firm. This is particularly in the area of lack of preparedness and willingness to provide the detailed information on the business - the market - the competition and what I have found most lacking is the financial information - both historical financial accounts according to an international standard and budget and projections.

　　This type of information is essential for the VC or PE to understand the business - assess the management and the viability of the business. It is also essential for the VC/PE to comply with their required fiduciary duty of the investors.

　　My experience over the years since 1995 shows this road to be quite bumpy and it still continues - with many breakdowns in the information - coming sometimes right in the beginning - sometimes in the middle and sometimes, unhappy surprises in the end. These breakdowns usually relate to the lack of thoroughness and quality and transparency of the financial information - good detailed accounts and records are needed to be kept according to international standards - that is a starting point - and should be kept from the formation of the business.

　　The second difficulty lies in ability to budget and realistically project the business from a financial model driven by business assumptions. VC's will test and watch a company's progress to their business model. If a company projects a year end figure and claims 99% assurance of a year end result and then hardly makes 50%, that tells the VC that the CEO is unrealistic and they may well take a pass on this investment unless the event was completely beyond the CEO's control or possible vision.

　　Even with good companies who have good financial reporting, there is often difficulties in the exhausting requirements of the due diligence, the detailed questions, the always asking for more detail, sometimes an attitude of reluctance arises and a frustrations that the VC or PE is really not going to do the deal but only wasting the company's time - the CEO wants to get back to his business. This is understandable, but this is the process and the VC would not waste its time if it were not serious. There are many other deals to do.

　　An open attitude of transparency can not be stressed enough, as well friendly patience to manage through this difficult process - and this process can take 6 months or more of intense investigation of the business and much longer if the company is not properly prepared.

　　Surprisingly some companies quit in this process and often do not even know that it is THEY who are quitting. They become reluctant to provide data, answer questions, open their financial books, show their contracts, give access to their major customers and vendors. In their frustration they blame the VC/PE for not understanding their business and asking so many questions and decide the VC/PE was not going to invest anyway - this could not be farther from the truth. Unfortunately, I have seen companies walk away from 10's of millions of USD each because of this. And this is money they needed and could have done great things with. However, those that do make it through this process find that the new VC/PE partner is now their best friend and partner to build a mutual success.

　　Now why do I tell you this? You are not sitting here to raise funds. This will not be you in this position. I tell you this because this next stage of Chinese companies developing will require a real partnership of all of us working in our own ways to guide their success.

　　The Chinese entrepreneur and business owner needs our collective help and guidance to educate them on these rigorous requirements for accessing funding, it is not taught in school, you cannot learn it in big business, so with a new history new being created, a new education is the only guide.

　　Concise, direct education to prepare proper detailed historical financial and management accounts from the beginning of the company, changing habits of rushing to create them when the funding is needed. How to prepare good budgets and run the business to them and track and explain variations? How to model realistic financial and business expectations? How to assess the market and competition realistically? How to package information i.e. contracts, legal documents, licenses, IP so that an investor can easily review and assess? How to get through the process by understanding the process from the Investor's Standpoint? There are just a few of the needs of understanding for the entrepreneur. And it is so important to have this type of training so the entrepreneur can also judge properly good advice from bad advice. So in your fields of guidance I ask that whenever you can, pass the message to be transparent, prepared and patient when looking for funding.

　　And we are also here today looking at Jieyang and how Jieyang can economically develop in the future and still maintain its beauty and natural surroundings - and I suggest one field could be to create Jieyang as a corporate education center, a Mecca for it, just like we are all enjoying meeting in this wonderful facility with the wonderful clean air and nature around us, but sharing and learning so much from each other.

　　You can easily imagine a well designed motivational series of 3-5 day courses which can be given continually many on weekends, with golf tournaments and enjoyment integrated, to provide the necessary fundamentals for young companies to achieve great results. This is a need for all of china, and it is not a need that is best provided by universities, what is needed is direct "how to" courses on specific narrow business and management topics.

　　Jieyang can create itself as a BRAND identity for this education. It can be know in China as the resource center for the best of this kind of training. This brand also will attract larger companies to the area and this facility for annual meetings and company conferences. Specific company training programs can be designed and held by Jieyang Business Center Training superior leaders and motivational speakers, certificates of completion and awards given. Jieyang training center can be the standard of excellence. And this could lead to consulting firms and VC firms setting up their operations here too.

　　One thing we all know - people want to live and work where the environment is clean and fresh and beautiful. Jieyang has this and with Jieyang's new infrastructure, this conference and resort center and especially the building of the new airport, this is not a far fetched dream but I pose as a real possibility for Jieyang to consider. When you think of corporate training, education, conferences and consulting, it is Jieyang. When you think of a good company to fund and work with, it is Jieyang trained company.

　　My time has ended, I thank you all for your patience in listening to my personal thoughts and I am looking forward to serving the city of Jieyang on its discovery and development of its greatness in the next few years. I ask pardon from the city of Jieyang for boldly putting forth this idea, it is clearly only one possibility of many, but one I passionately feel is needed in China. Thank you.