The most mysterious legion swept the VC circle: Tencent won 70 IPOs, Ali made 18 billion yuan


Editor’s note: This article comes from WeChat public account “Investment World” (ID: pedalai2012), author Yang Jiyun, 36 氪 released with permission.In the winter of 2004, Liu Chiping accepted Ma Huateng’s second invitation and flew from Manhattan to Shenzhen alone.He gave up the superior treatment of Goldman Sachs and served as the chief strategy officer of Tencent, focusing on three things-strategy, mergers and acquisitions, and investor relations.Prior to this, Tencent’s three things have been left unattended, and Ma Huateng is waiting for someone whose vision fits him.Since then, a “strongest on the ground” CVC (Corporate Venture Capital) has risen.According to incomplete statistics, Liu Chiping has been in charge of Tencent’s strategic investment department for more than ten years and has achieved outstanding results: investing in more than 700 companies and harvesting nearly 70 IPOs.He also recruited Zhang Xiaolong for Tencent through strategic investment. At that time, Zhang Xiaolong, who sold FoxMail and worked for Boda, planned to go to the United States. Tencent acquired FoxMail from Boda. Zhang Xiaolong joined Tencent, only to have the WeChat legend behind him.This is strategic investment-the most mysterious legion in the Internet circle.Tencent has Liu Chiping and Ali has Cai Chongxin. They are all from venture capital. They later took the lead of the giant’s strategic investment department, holding huge amounts of “buy, buy, buy” and unlimitedly expand the territory of Internet giants. The momentum is comparable to that of Sequoia..In 2019, China’s local venture capital has fallen into the winter quagmire, but CVC represented by BAT has ushered in an outbreak: Ali has made 18 billion yuan, Tencent has harvested nearly 70 IPOs, and the Internet investment giant ’s war investment department has captured China ’s new economy.Halfway through the country … After 20 years of stumbles, China’s CVC has quietly become an indispensable force in the venture capital circle.Looking ahead, an empire territory that belongs to CVC emerges-in addition to BAT, emerging giants such as, Xiaomi, Byte Beat, Meituan Review, Didi and others have set up their own strategic investment departments, at the expense of buying the desired projects.The investment strength of these small giants is no less than that of front-line VC / PE institutions.CVC has gradually become a unique landscape in the magnificent history of Chinese venture capital.The most mysterious department, the strategic investment department of the Internet giants has a long-standing reputation, but it does not often appear. The strategic investment department of the Internet giants can be called a secret.The important player of CVC, Tencent, is not only the engine and engine of the new strategy, but also responsible for ensuring the cooperation and synergy between the business unit and the investment.In 2008, Tencent established its own investment and mergers and acquisitions department. It is said that this department once had an internal home page that other departments did not have, did not bear the company’s KPI indicators, and had very high confidentiality requirements.In addition to Tencent, Ali’s war investment department has also attracted much attention from VC / PE.Tencent Liu Chiping and Ali Cai Chongxin, these two people who have the highest status within the group represent their respective war investment departments to a certain extent.Representatives of the two investment bankers jumped out of the circle early to join the startup and became the men behind Ma Huateng and Ma Yun.There is not much public information. Except for their early career experience and the smooth sailing after joining BAT, all the strategic investment decisions to kill the results and forward-looking deployments can only be glimpsed in the investment maps of Tencent and Ali.One or two.Today, for the BAT who bought half of the Internet, the battlefield has already become an extremely important legion of the group.For a long time, the domestic Internet circle has inextricably linked with BAT. Whoever intersects with and is compiled by them is an inevitable “station team” consideration after the company grows.However, BAT’s three-point world is over.If it is said that before 2017, the main force of domestic Internet CVCs was BAT, but since 2016, head companies represented by Byte Beat,, Meituan Reviews, Didi, Xiaomi, etc. have become important.Buyer.Among the battle investment departments of many Internet giants, the byte-beating investment team is the most secretive.In the past two years, the bytes of people who have been suspicioned and wondering which side of the team BAT are beating, not only do they not explicitly trust who they are, they have also become the one to collect others, but the news of the acquisition has never been actively disclosed.In 2017, a collaboration document APP was about to announce financing news. The company’s PR team told reporters at the time of the release that it could downplay the “today’s headline” in the financing news because investors were unwilling to say more.”This is the most mysterious department in the headlines.ByteDance related people told the investment community (ID: pedaily2012). Obviously, this mystery is also created in the company. As the director of ByteDance’s combat investment department, there are very few resumes that are strictly taught.It is impossible to know how many people share their labors. Looking back at history, the story of CVC originated at the beginning of the last century. In 1914, DuPont’s investment in General Motors was regarded as the starting point of CVC. Later, the oil company EckerSen used the “venture investment plan” to successively invest in 37 companies, which once attracted the attention of VCs, and the era of corporate venture capital began. 84 years later, the seeds of CVC drifted across the sea and took root in China.In 1998, the first year of Chinese CVC investment, a 12 million yuan investment from Shida Group was considered to be China’s first CVC investment case. Over the past 20 years, China CVC has formed a strong venture capital circle.Legion. The background of the head of the team, which is the more difficult to enter the Dachang War Investment Department and VC / PE? It is even more unfathomable that it is the boss of the war investment department of each major factory. In April this year, the technology media TheInformationThe organization structure and division of personnel responsibilities of Byte Beat, including 106 corporate executives, and the business lines behind them, came to the surface only after strict instruction from Byte Beat Venture Capital. Yan added to Byte Beat in 2015.Acting as Zhang Yiming’s business assistant. According to The Information, the number of investment teams led by Yan Shi is quite large. There are 16 employees reporting directly to him, which is comparable to the number of mature VC / PE teams. Yan Yan took over the strategic investment department.Previously, the beating strategy department and investment department have replaced the heads of the company: Chu Dachen, Hua Wei, and Tian Xiaoan. The backgrounds are former vice president of strategy of Sina Group, former head of the investment department of Phoenix Network, and former director of CICC.Manager, currently Hua Wei is the deputy general manager of Byte Beat, and is in charge of human resources. Tian Xiaoan is the vice president and CFO of Byte Beat. After several adjustments, there is also the Baidu Battle Investment Department. In the past, Baidu’s investment and acquisition department assumed all of Baidu’s, But was questioned that its investment decisions were much less efficient than those of Ali and Tencent. In September and October 2016, Baidu successively established two market-oriented fundsPay attention to the early Baidu venture capital, pay attention to Baidu capital in the middle and late stages, responsible for financial investment. The original investment and mergers and acquisitions department has become Baidu’s strategic investment department (Baidu Battle Investment). Currently in charge of Baidu Battle Investment Department is joined in JuneHe Junjie, who is the vice president of Baidu, is responsible for the group’s investment and acquisition department and strategic investment management department. Prior to He Junjie, Ma Dongmin, who was highly tied to Li Yanhong, actually controlled Baidu’s war investment, although he was not in office, but was the direct leader. According toA person in Baidu’s investment department informed: “Now it has been reported to Ma Dongmin.In contrast, Ali’s Cai Chongxin has more stories. Cai Chongxin, who quit his high-paying job and joined Ali, was regarded as an idol by countless entrepreneurs. He built an Ali strategic investment team from scratch until he officially stepped down as Ali’s war investment department in June this year.Only as the person in charge, did he invest in the rivers and lakes. Like Cai Chongxin, which affected the venture capital circle, as well as Liu Zhiping, Tencent’s “Key Mr.”. He was an executive director of the Goldman Sachs Asian Investment Banking Division. In 2005, he was the chief strategic investment officer.Joined Tencent as a post. At that time, he was mainly responsible for strategy, investment, and mergers and acquisitions. He led important investment events in, Didi, Sogou. Speaking of Liu Chiping, it was rumored that his work was not managed in a comprehensive manner, and his temperament also affectedIt is the style of Tencent ’s strategic investment—more buddhist. Interestingly, most of the “key figures” of the war investment department are from the VC / PE circle. On September 12, this year, Jingdong officially appointed Hu Ningfeng as the head of strategic investment.Responsible for the strategic investment transaction of JD Group. Before joining JD as the group vice president in July, he had 3 years in DingInvestment served as managing director, and later joined Kaihui Fund. The threshold of the battlefield investment department of the Internet giant is comparable to Wall Street. For example, the Tencent battlefield investment department, many of whom are from well-known investment banks such as Goldman Sachs, Bertelsmann Investment, Morgan Stanley,And they all have Peking University Tsinghua University or overseas famous school background.It is said that the battalion investment department of BAT, the total number of school enrollment does not exceed 10 each year, and only the best graduates are accepted, which has led to discussions: which of the Internet strategic investment department and VC / PE is more difficult to enter?”The strongest on the surface” CVC: Tencent has harvested nearly 70 IPOs, and Ali has made 18 billion yuan to look back on Chinese venture capital for 20 years. CVC is like a forbearable, decisive and resolute beast.At first it was low-key and even marginal, but the rapid train of the Internet made it take advantage.Even though it was caught in the winter of the first venture capital circle in 2002 and affected by the PE wave in 2010, CVC investment has always been at its own pace.In 2019, a miraculous scene was born. In a list of top 100 unicorn active investment institutions, Tencent ranked second with 46 unicorns, and ranked ahead of Tencent with 92Sequoia capital of a unicorn.The investment performance of the past few years shows that the corporate investment of Tencent and Ali is too strong, so that when people think of CVC, the first thing they think of is BAT. At the same time, Tencent, Ali, and Baidu have begun to show that the strongestking”.”Since its establishment in 2008, Tencent Investment has invested in many companies in the fields of game entertainment, e-commerce consumption, local services, and financial technology. At present, nearly 70 companies have been successfully listed and more than 100 have become unicorns.”Not long ago, Li Zhaohui, a Tencent investment management partner, disclosed to the public.In September, Alibaba CFO Wuwei released important data: Alibaba’s strategic investment is worth about 83 billion US dollars. As of now, Ali has withdrawn more than 50 investment projects and realized 18 billion yuan in investment income.China Internet CVC is very unique.McKinsey data shows that large US technology groups account for less than 5% of total domestic venture capital investment flows, while Alibaba and Tencent account for 40-50% of venture capital flows in mainland China.Different understandings of strategic investment will result in different investment methods.Ma Huateng has said that the basic logic of Tencent’s investment is that in addition to communication and social content, all are handed over to partners.Liu Chiping further introduced that Tencent Investment is different from traditional strategic investment: it focuses on investment companies rather than Tencent; it invests in people, and the soul of investment is people and creativity.Tencent’s consistent style is that everyone who has the money makes it together, and Ali advocates a dominant family. The investment must be “a valuable investment in our strategy.”Wu Wei explained in detail the strategy of Ali’s war investment: 1. Continuous strategic investment; 2. More focus on business collaboration; 3. Continuous review of the investment portfolio and strict supervision and has made about 50 investments at home and abroad in the past five years. Among them, the cases that have attracted much attention include the strategic investment in Farfetch, a London-based fashion buying flashlight retailer, investment in the Chinese luxury e-commerce platform Siku Group and clothing retailer Vipshop.Will wait.The core is e-commerce, and everything revolves around e-commerce.Hu Ningfeng’s appointment means that has realized that it lags behind in the level of war investment.He said at the communication meeting after taking office that he is reviewing ’s historical investment, hoping that the investment and mergers and acquisitions initiated by the business department and the war investment department will reach half and half. He said in words that will become a sinking market in the future.Big buyer.To a certain extent, the battle vote is a war of traffic.In the past 5 years, the byte beat of desperately producing explosive APPs has extended the tentacles farther through investment and acquisition.Content, social, tools, education … “Headline Department” became an army.Entrepreneurs, do you want to stand in BAT?Over the past 10 years, China’s CVC has been quite large and its subjects are very diverse.For example, Fosun Group, Haier, New Oriental, Lenovo Group, etc., which started their foreign strategic investment earlier, followed the rise of the Internet, the mobile Internet wave giants BATJ, Xiaomi, Meituan comments, etc., and the unicorn byte beating under the bonus., Ant Financial, Didi, Shangtang Technology, etc., have set up their own strategic investment departments, at the expense of buying favorite projects, becoming a new force in the VC / PE circle.Today, for the BAT who bought half of the Internet, the battlefield has already become an extremely important legion of the group.In the BAT report card, Didi, Xiaomi, Meituan Reviews, Shangtang Technology and other companies also started CVC and even began to compete with BAT.The battle between the Internet giants has also burned into the War Investment Department. In investing in this territory, various companies are scrambling for projects without mercy.”The biggest value of CVC is to bring companies together, but the strategy of each company will change. If the relationship between the invested company and the CVC parent company changes during the change process, for example, Meituan will have to pay with Tencent.Conflicts of core interests. If it does not pay, everyone will be happy, so CVC’s investment in enterprises is a dynamic process and a game process. “He Zhiqiang, senior vice president of Lenovo Group and president of Lenovo Venture Capital Group, explained this.CVC, a different force in the venture capital circle, has made the Internet of science and technology networks inextricably linked. Therefore, whoever intersects with and who compiles it is an inevitable “stop team” consideration after the company grows.For startups, whether to “stand in line with BAT” is not an unfamiliar topic.”We will tell the investees to think clearly that taking BAT’s money and synergizing with their business are two different things. BAT’s investment and business are always two departments. How can you get this and communicate with each department within it?Tickets, but also allows the tickets in your hand to become the real bargaining chip of the game, this is even more important. “A front-line VC partner told the investment community.A US dollar PE partner said: “It is inevitable to talk about Tencent and Ali when talking about strategic cooperation in China. We have calculated that about 1/4 of our current investment in China is related to Ali and Tencent.. “There are also early VC investors who told the investment community:” Welcome to BAT (come to take an offer). “In their view, if the initial intention of the venture is mergers and acquisitions, you can consider accepting CVC investment as early as possible; if the goal is IPO, find the right timePoint to CVC.Looking back over the years, most of the investment cases that caused a sensation in the rivers and lakes are mostly behind the Internet giant’s war investment department. It is exactly the same that has created the magnificent scene of China’s technological Internet..