The 2018 (2018th) Capital Annual Meeting & Awards Ceremony, hosted by Financing China, was held at Four Seasons Hotel Beijing on January 1, 31. On behalf of New Henglida Capital, Dr. Jia Junxin was invited to participate in the VC special forum "Strategy Change, Finding Opportunities from Segmented Fields" held on February 2, and discussed with a number of peers the new hot spots in the industry that VCs are concerned about and how to deal with the competition brought by the forward investment stage of PE. In addition to Chairman Jia Junxin, the guests included well-known investors in the industry: Duan Yao, Partner of Tongchuang Weiye, Huang Libo, Founding Partner of Cornerstone Fund, Liu Kai, Partner of Pangu Capital, Xu Hai, Partner of Lianxin Capital, Xu Chen, Managing Partner of Gobi Venture Capital, and Yang Dongrui, Founding Partner of Xinwo Investment.

Now the atmosphere is lively and the applause continues. In the forum, Dr. Jia Junxin had his own unique views on the moderator's general questions about the increasingly blurred distinction between the current investment stages, and he expressed two important views. First of all, it is not normal for the distinction between VC and PE in China to gradually blur at this stage. For example, he said, even large investment institutions, in the VC can analyze the core technology of all walks of life professionals are very limited, if the institution to do a very complex investment analysis at the same time but also pay attention to PE and even other stages of industry research, will lead to institutions can not focus and professional research on enterprises and industries, and eventually make some non-professional investment behaviors similar to gambling.

Secondly, since the investment logic of VC is obviously different from PE, VC pays more attention to trends and industries, technologies and products, and needs to conduct in-depth industry research with a very high degree of professionalism, and PE pays more attention to whether the fundamentals of enterprise value creation meet the requirements of the capital market. The two investment stages are very different in terms of work and research content, so different human resources should be allocated, and PE thinking cannot be used to do VC, nor can VC manpower be used to do PE.

New Henglida has always been positioned to invest in start-ups with the world's most cutting-edge technologies such as artificial intelligence and biomedical, so the team is equipped with industry experts and scientists. Only by allocating talents in this way can it be possible to conduct very in-depth and clustered professional research and analysis on the cutting-edge technology and industrialization application of artificial intelligence and biomedical industry in the VC stage.

Dr. Jia concluded that mixed-stage investment in complex industries is an irrational behavior that seeks short-term profits. VC should go forward, while PE should go backward. VC goes forward to pay more attention to some cutting-edge technology companies that represent the future, PE should pay attention to mergers and acquisitions, so the situation of relying on IPO exit will change, and mergers and acquisitions will become the main way to exit. From the development history of the United States from 2005 to the present, due to the evolution of mergers and acquisitions, delisting, and bankruptcy, listed companies have been reduced to half of the original. The scale of the US financial capital market can accommodate at least <>,<> listed companies, and the scale of the Chinese market is similar or even larger, so the increment is still very optimistic.