Recently, Li Lun, Panda Capital Partner, talked about the phenomenon of blind money burning and expansion in the past two years in such industries as bicycle-sharing during an interview with Peng Mei journalists on the margins of the 18th Annual Forum of China Equity Investment in Beijing/2018 Annual Conference of the Investment Community.
Panda Capital was established in 2015, co-sponsored by four partners, Li Lun, Liang Weihong, Li Xinyi and Mao Shengbo. It is a venture capital institution focusing on the early opportunities of TMT industry. The investment phase covers the angel turn B. Li Lun is a B-wheel financier and a member of the board of directors.
Focus on travel and finance from a consumer perspective
Li Lun believes that consumption is a major driving force for the future development of Chinas economy. He said panda capital is measured by consumption when looking at travel and financial projects, and will continue to look at more consumer projects in the future.
Taking the field of travel as an example, Li Lun said, At present, the proportion of travel expenditure in the disposable income of urban residents is not low. In a city like Beijing, a young persons monthly travel expenditure should be 2500-3000 yuan. ?
Li Lun believes that when the travel demand including the subway and bus as social public resources has been met, the current solutions in the field of travel consumption need to be better integrated so that everyone can travel more conveniently. He said, When we went to Mobai, we considered it as a short-distance transportation consumption supplement.
The changes in the consumer industry also put forward higher requirements for the upstream production areas.
Now consumers are demanding more and more diversification of products, unlike the previous one, which can be eaten for decades. Consumer enterprises need to consider how to better perceive this change through technology, find more subdivided populations, and better serve the target users, Li said. He adds, Technology can also contribute a lot to flexible production. The reason why commodities need large-scale production is that only the scale can be efficient, but the current scientific and technological means can meet the needs of small-scale production still has good economic benefits. We have seen a large number of such objects appear in this market.
Overexertion of capital is an inevitable phenomenon in a stage of development
Speaking of the phenomenon of blindly burning money to expand in such industries as sharing bicycles, Li said, The initial intention of capital is good, but sometimes it is too hard. He added, But in the long run, this is an inevitable phenomenon in the development stage.
According to Li Lun, the development trend of venture capital can be divided into three stages: cognitive drive, capital drive and industrial drive.
The earliest mobile Internet revolution came when money was made in the cognitive field. Li Lun introduced that you can make money by first realizing the opportunities that this change brings to various industries, but this recognition may be found 12 months later, the whole market knows. ?
The past three to five years have been the most serious stage of capital accumulation, i.e. capital-driven. For example, if you know that a taxi business has 20 million units a day, a large number of investors will start to calculate its income scale and profit level. After accounting, investment will become a reverse process, that is, if this is a company that can reach 50 billion in the future, then my 20 billion yuan and 30 billion yuan are not expensive.
The path and mode of the project are relatively definite, and finally the investment becomes capital-driven. When each cycle of change reaches this stage, it is inevitable to enter this stage, Li said.
After 2017, the venture capital circle began to talk about industry. Li Lun believes that this is the right direction. After large-scale things are driven and transformed by capital, it is time for technology and capital to infiltrate into every industry to change and upgrade.
According to Li Lun, the cycle of technological change is cognitive leadership, capital leadership, and then industry resources. After all industries have completed an upgrade as a whole, they will wait for the next wave of technology to upgrade all walks of life again.
Li Lun said, We have an internal standard, that is, we hope that when the capital is too strong, the projects you invest in will not hurt the world. For example, you do overdo it, but they all subsidize the life of white-collar workers. Everyone takes more taxis and calls for takeaway. Life becomes better. Its not too big a problem.
The Investment Strategy of Youth Fund Needs to Consider Present and Future
Li Lun believes that the formulation of investment strategy at any time is inseparable from two things: one is the external environment, and the other is the stage of development. He said: We panda is a young, not so big fund, when the whole capital market encounters the cold winter, our pockets are not so deep.
From the perspective of sequoias scale and globalization, its enough to find projects that go through time cycles until the next decade, but can I just wait like sequoia? I cant, because if I wait, my fund may be gone. Li Lun said, So every fund should look at its own situation.
Speaking of panda capital, Li said that the first step is to clarify the whole stage of economic development, select one or two industries with opportunities, go deep into the industry, and do a good job of the industry in the light of their own stage. At the same time, there is still a part of the fund to allocate those long-term projects with long-term value in the future. Li said, As a fund manager, the most fundamental thing is to take into account the present and future. Now we need to solve the problem of surviving, and in the future we need to solve the problem of surviving for a long time and living well.
Source of this article: Peng Mei News Responsible Editor: Gan Wenbin_NBJS7621