Kunzhong Capital Wu Zishuo: Looking For The Intersection Of "Localization" And Vertical Industries

Oral / founder partner of Kunzhong capital Wu zishuo

Collation / 21st century economic report Zhao Na

Early investment institutions should also pay attention to "exit orientation" when looking at projects. To improve the hit rate, they should go to the places where the most listed companies will appear.

The areas we are focusing on include new energy vehicles, chips and consumer electronics. Among these vertical industries, the most likely breakout point is the intersection of "localization" and the industry.

From the perspective of the source of the case, we have established ties with the ecosystem of vertical industries, and we are looking for enterprises with strong demand for domestic substitutes, easy to make profits and high technical barriers. Of course, the certainty of listing of such enterprises is also higher.

Based on this idea, we have invested kunyou optoelectronics and Lingming photonics in the field of optical chips, Suteng juchuang in the field of lidar, and Xianhui technology in the field of automatic production line.

Kunzhong capital Wu zishuo. Data map

Investment "from 0 to 1"

The logic of VC investment in the past was investment and innovation, including new mode, new economy and new flow. A lot of "investment" started in the past two years. In other words, we should be able to do it independently. China is a big manufacturing country, any manufacturing related short board is our investment point.

At present, there are some "from 0 to 1" opportunities in the field of advanced manufacturing, such as optical chips, lidar and other industries are in the stage from 0 to 1, which is the investment opportunity of VC. VC has a higher tolerance of failure rate than PE, and the return of project success is higher.

In terms of project selection, we mainly look for the one with the highest threshold and the best team; it is certainly good for the company to be listed quickly, but we can also wait if we can't go to the market soon. In the aspect of learning and team building, we should be strong in learning and team building.

Take Xianhui technology as an example, the company's management team is complementary and cohesive, with both technical and business capabilities. In short, the long board of first advantage technology is long enough, and there is no obvious short board.

DD is still the core work

VC investors know only a small part of the technology, and it is impossible to understand both lidar, driverless and chip. Therefore, the core work of a good project is to do a good job of due diligence.

To be specific, investors should have a strong learning ability. They need to quickly cut into the market, find key problems, find key people to interview, and find key upstream and downstream customers to do their best.

In the process of post investment management, our self orientation is still to be "co pilot" and help them to see the route. It is impossible for investors to understand technology better than entrepreneurs, and the advantage is that they have a broader vision than entrepreneurs. We can also be more sensitive to different capital models and industries.

After investment in technology, we will tell enterprises how to look at the industry in the capital market, how to look at them, how to look at competitors, and what aspects we can better communicate with the capital market. Others are really strong and don't need much help from investors.