Relying on the background of colleges and universities and landing in Zhuhai Hengqin, the most prominent differentiation of re innovation investment is to use capital means to help the scientific research achievements of Fudan University and national scientific research institutions to better land, so as to realize the tripartite interaction and positive cycle of the three elements of “venture capital”, “scientific and technological innovation” and “local industry”.
Since the beginning of this year, as more and more professor level projects have landed in the capital market, the enthusiasm of the primary market for scientists and scientific research institutions has also been unprecedentedly high. Rushing to invest in scientists has become another new chip for investment institutions to compete with each other. More and more Chinese universities and scientific research institutions have joined the VC investment camp in person, taking advantage of the close first mover advantage of scientific research institutions, using government and social capital to accelerate the transformation of scientific and technological achievements and truly support scientific and technological innovation.
As an important investment platform for Fudan University to actively serve the national strategy, fuchuang investment, established in Hengqin, Zhuhai in December 2019, has also undertaken such a mission. Under the background that colleges and universities have invested in VC in the primary market, what is the background and purpose of re creation investment? Taking the lead in landing in Dawan District, how to make a forward-looking layout to promote scientific and technological innovation and local industrial upgrading? Facing the fierce market environment, how to walk out of the road of differentiated Characteristic College VC? What are the advantages of investing in science and technology? How to look forward to the future investment trend? Dr. Cao Xiaofei, general manager of Fu Chuang investment, recently gave the relevant answers in an exclusive interview with the reporter of the securities times.
let investment, technology and industry interact
1. Q: as an emerging investment institution, what is the background and purpose of fortek investment?
Cao Xiaofei: Fu Chuang investment started operation at the beginning of 2020 and the outbreak of the epidemic. It invested its first project in April, completed the filing and registration of the fund manager in September, and independently issued the first fund product in August 2021. The background of the establishment of Fu Chuang investment is to promote the transformation, incubation, industrialization and capitalization of scientific and technological achievements. Zhuhai Municipal People’s government has signed a strategic cooperation agreement with Fudan University, relying on the discipline, talent, technology and alumni resource advantages of Fudan University, based on Zhuhai Hengqin, serving the innovation drive and industrial transformation and upgrading of Zhuhai Hengqin and Guangdong, Hong Kong and Macao Bay district.
Fu Chuang investment is positioned as a research driven emerging science and technology investment institution. Its strategic goal is to invest in a number of excellent projects, establish a series of sub funds, build Hengqin venture capital ecology, promote industrial diversification in Zhuhai and Macao, and finally build a science and technology innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) investment group.
2. Q: in the face of the fierce market environment, how does re innovation investment go out of the differentiated characteristic VC road of colleges and universities? So as to better serve local scientific and technological innovation and industrial transformation and upgrading?
Cao Xiaofei: at the 12th Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) forum in 2020, the development requirements of “triangular interaction” attracted much attention. Triangle refers to finance, technology and industry. Reinvestment investment is practicing the development concept of “triangular interaction”. Specifically, it is to promote the triangular cycle and benign interaction between investment, science and technology and industry, endow science and technology with capital, endow industry with science and technology, and endow capital with industry; The specific form is to promote the transformation of science and technology with service capacity, the industrialization of science and technology with incubation capacity, and the capitalization of science and technology with investment capacity.
Since the Sino-U.S. trade war, China’s high-tech field has been blocked by external restrictions, which gives us great inspiration: if China wants to overcome the middle-income trap, it is also the only way to develop high-tech industry. Without private equity funds and venture capital, high-end industries are difficult to develop; Without the capital market, it is difficult for scientific and technological progress to give birth to huge industries. Therefore, we need to combine the advantageous industries or key industries of the local government and use capital to promote the scientific and technological industrialization of the industry and the industrialization of science and technology.
Where does high technology come from? From top universities and scientific research institutions. In fact, the work faced by the CEO of a company and a professor in a university is very different. Research thinking and business thinking are two completely different ways of thinking. There is still a long way to go from laboratory results to delivering customers’ products. Therefore, in our equilateral triangle, we need the support of the government and capital to catalyze the commercial landing, At the same time, professional teams are needed to incubate start-ups.
Therefore, the most prominent differentiation of Fu Chuang investment is to use capital means to help Fudan University and national scientific research institutions better implement the scientific research achievements, realize the triangular interaction and positive cycle of the three elements of “venture capital”, “scientific and technological innovation” and “local industry”, open up the double closed loop of industrialization and capitalization of scientific research achievements, and create the capital value of science and technology.
At the same time, Fu Chuang investment landed in Zhuhai Hengqin, with capital as the link, promoted the landing and transformation of scientific and technological innovation achievements of Fudan University and scientific and technological projects with core competitiveness and growth potential in Zhuhai, accelerated the convergence of upstream and downstream enterprises in the industry to Zhuhai Hengqin, and then radiated to Guangdong, Hong Kong and Macao Bay area, making contributions to Zhuhai Hengqin’s construction of an innovation highland in Guangdong, Hong Kong and Macao Bay area.
take advantage of Fudan’s advantages and focus on science and technology investment
3. Q: how does reinvention investment view the current macro trend of scientific and technological innovation and scientific and technological investment, and what are its advantages in scientific and technological investment?
Cao Xiaofei: from a macro perspective, China is in the best development period since modern times, and the world is in a great change that has not been seen in a century. The “great change” is a major judgment on the great changes in the international pattern. After nearly 40 years of economic growth in China, scientific and technological innovation will become the most important driving force of China’s industrial economy. Science and technology investment is a long-term thing, and all this has just begun. What reinvention investment needs to do is to invest in “the beginning of a great cycle”.
With industry as the guide, academic circles as the backing and capital as the bridge, re innovation investment combines the theoretical research and applied research of academic circles with the industrial resources and industrial capacity of industrial circles, promotes and enables each other, and gives play to the synergistic effect of 1 + 1 > 2.
The “learning” of industry, University and research of Fu Chuang investment comes from Fudan University and national scientific research institutions. The school of microelectronics, medical school and Mathematics Department of Fudan University all have national key disciplines. These disciplines are Fudan’s ace majors. Many scientific and technological innovation projects and scientific and technological innovation talents have been incubated from Fudan University. We have systematically sorted out the scientific and technological innovation projects and alumni entrepreneurship projects of Fudan University, carried out technology transfer and business incubation of the top and cutting-edge science and technology of Chinese universities, and realized the deep integration of industry, University and research in the real sense with capital as the link.
In recent years, Guangdong Hong Kong Macao Dawan district has arranged many global innovation resources in terms of scientific and technological innovation, such as national innovation and entrepreneurship demonstration base and maker space; Share innovation and entrepreneurship resources with Hong Kong and Macao and jointly build an innovation and entrepreneurship ecology. At present, based on Zhuhai Hengqin and standing on the shoulders of giants, Fu Chuang investment realizes its mission of accelerating the convergence of upstream and downstream enterprises of the industry to Dawan district through capital assistance through its own unique advantages.
4. Q: what kind of investment logic and investment model does Fu Chuang investment adhere to?
Cao Xiaofei: our investment logic is summarized in one sentence: “capture the explosive growth opportunity of long-term equity value with scientific and technological innovation as the core in the national rejuvenation”. In this covid-19 epidemic, China also shows an indestructible overall supply chain advantage. We believe that this advantage will promote China’s intelligent manufacturing to enter the field of global competition in the future.
Taking the national rejuvenation as the trend, we divide the key investment fields into three categories: integrated circuits, artificial intelligence and biomedicine, which are further simplified into three words “hard”, “soft” and “human”. “Hard” is the foundation of a strong country, which is a semiconductor. It is a tangible chip, discrete device, etc. “Soft” is the soul of building a country, algorithm, code, artificial intelligence, big data and cloud computing. Writing AI algorithm into the chip is a combination of software and hardware, which are also complementary and inseparable. “Human” is a major medical health, including biomedicine and Innovation Medical Management Co.Ltd(002173) devices. We focus on rare diseases and related biotechnology, which is a unique investment field.
Reinvestment investment is different from traditional financial investment and industrial M & A investment. We are committed to creating an integrated model of “incubation + investment”, which has achieved initial results in Dawan district. Re creation investment is an investment platform of “incubation + investment” linkage platform. At the same time, we also have an incubation platform, which has provided incubation services for more than 50 times, and cultivated 5-10 high-tech enterprises and 1-2 Unicorn enterprises. Combined with the excellent local industrial foundation and the support provided by the government and universities, we have confirmed the feasibility of the “incubation + investment” model.
5. Q: looking forward to the future, how will re innovation investment focus on the layout?
Cao Xiaofei: starting this year, the Communist Party of China has entered its second 100 years and is moving towards a new development stage of building a world economic power. The next 15 years will be the most crucial 15 years for our development. In this changing situation, in order to promote the integrated development of digital economy and real economy, we must strengthen the tackling of key core technologies and put independent innovation first.
Independent innovation can be divided into two parts, one is “independent” and the other is “innovation”. China’s desire for self-control has increased sharply in recent years. Whether it is the chip lithography machine monopolized by foreign countries or ZTE’s disintegration by the comprehensive sanctions of the United States, it reflects a truth: if the technology is not in its own hands, it will always face great risks. Innovative technology has always been an area highly valued by the CPC Central Committee. From the aspects of Internet economy, mobile payment, digital technology, innovative medicine, covid-19 vaccine and so on, China has demonstrated its determination and excellent achievements in firmly pursuing innovative technology. Since the outbreak of covid-19, digital technology and digital economy have played an important role in supporting the fight against covid-19 pneumonia and restoring production and life.
Reinvestment investment sees the advantages of China’s socialist system, new national system and super large-scale market. It is expected to promote scientific and technological progress with the power of capital and firmly grasp the autonomy of scientific and technological innovation and digital economy in China’s own hands.
In the future, we hope to expand the “incubation + investment” model to China’s broader economic stage, face important emerging regional economies, and arrange differentiated investment fields and science and innovation projects according to the direction of local key industries; At the same time, through our solid research work, we will explore the excellent projects in key tracks, take advantage of the trend of the National Games, take advantage of the wind of scientific innovation, and use the power of capital to realize the positive cycle and triangular interaction of capital, technology and industry. Finally realize the common vision of “rejuvenating China with science and technology and creating value with knowledge”.
(Securities Times · venture capital exchange)
