Chapter 708 Duan Yongping Resigns
No one doesn’t want the power in their hands to go further.
Seeing the performance of everyone, Xu Liangliang felt a little complicated.
With the continuous development of the global economy.
Localization of management will become the default development strategy for more and more multinational companies.
The best example is Sequoia Capital.
Directly canceled the global headquarters and divided its global investment business into three regions: Europe and the United States, Greater China, Southeast Asia and India.
Each region manages itself.
The headquarters is only responsible for brand maintenance, financial supervision and other services.
Given those investors who know the local market best, they have the greatest freedom to make decisions.
But copying Sequoia is not advisable.
While reducing management costs and improving efficiency, we can also seize investment opportunities as much as possible and amplify revenue and profits.
Xu Liang will gradually let Hanhua Venture Capital Department embark on such a path.
However, unlike Silicon Valley, which is more popular with Internet companies, startups in Washington are mostly concentrated in the fields of computer system design, custom programming, research and development of private institutions, etc.
"Established a U.S. subsidiary, and Lin Junrui served as the company's CEO. He was fully responsible for the management of the U.S. company and also managed the investment of the Mars 2 Fund.
He needs to explore the development model suitable for Hanhua step by step.
Mars 2 Fund, which was the earliest established and has the largest amount of capital under management, and Fund 7, which is headed by Duan Yongping, are responsible for the San Francisco Bay Area and Seattle.
"Mr. Xu, how do you manage the business here in the United States?"
Mars 13 is in charge of Washington.
“Fund No. 5 moved to Austin, and Chen Shijun was fully responsible for the management of the Austin office.”
The Mars 5 Fund covers Austin.
This is what Javed Karim, the head of Fund 13, is good at.
Chu Gang serves as Vice President of Hanhua America, responsible for the management of the U.S. private equity department and the management of White Tiger U.S. Funds. ”
The results of both of them are also very good.
So, I decided to set up three offices in Boston, Austin and Washington. The Boston office was settled by Mars 14 Fund and was led by Chad He Earley is fully responsible.”
Xu Liang's allocation directly separated all the only four funds in the US venture capital department.
East, West, South and Central, covering exactly the United States.
"Okay, that's all I have to say, do you have any other opinions?"
Mars 14 is responsible for Boston.
“The second thing is that the company has more and more American funds, and it is not suitable to concentrate them all in Silicon Valley and New York.
As for the missing north, the Great Lakes region is already rotten.
“BOSS, if I find a better investment opportunity outside of Washington, DC, can I invest?” Javed Karim asked.
But they don’t know that ‘Boston’, the ‘gene city’, is also a highland of innovation in the global biomedical field.
As a fund that mainly invests in biomedicine, Fund 14 is undoubtedly more suitable for working in Boston.
Boston’s Kendall Square is known as the ‘Wall Street of the global pharmaceutical industry’.
Relying on the two prestigious universities of ‘MIT’ and Harvard University, it has attracted more than 2,000 scientific research institutions and companies from the global life sciences field (such as AstraZeneca, Thermo Fisher, Novartis, Pfizer, etc.).
It is the headquarters of Freescale Semiconductor and Dell.
In addition, IBM, Apple, Google, Intel, Cisco, 3M, eBay, etc. also have local branches.
Lin Junrui asked.
They are responsible for managing Hanhua America Company, and others have nothing to say.
However, if you are optimistic about the opportunity and other brother funds have already started to contact you, then you cannot compete for it.
“Of course. The reason why I opened offices in various places is to allow you to be close to the source of innovation and not miss local investment opportunities. It is not to keep you complacent.
Lin Junrui and Chu Gang are the directors of Hanhua America The earliest fund manager of the subsidiary.
That is to say, it is mainly computer software and hardware.
Since 2001, Washington has increased its high-tech employment by 20%, second only to San Francisco in the United States. Bay Area.
"Fund 13 moved to Washington, D.C., and Javed Karim was fully responsible for the management of the Washington office."
Washington, as the political center of the United States, attracts not only politicians, but also engineers from all over the country and entrepreneurs.
Austin, Texas is the technology center in the southern United States. Thanks to low housing prices and exemption from state income tax, it has attracted a large number of technology companies to settle in and has become a well-known high-tech center, known as "Silicon Mountain" .
“OK, I have no problem.”
Many people know the name ‘Silicon Valley’.
If the brother fund gives up, the two parties will communicate first and then decide whether to invest. "Xu Liang said.
Xu Liang glanced around with questioning eyes, and the others did not ask any more questions.
"Chen Shijun and Duan Yongping stayed, and the others dismissed the meeting first. "
After everyone leaves.
"Fund No. 5 and Fund No. 7 are about to expire. How much funds are you planning to raise in the next round? ”
Mars 5 and 7 are both due in December 2004, with less than 3 months left.
After the two looked at each other, Chen Shijun said: "Mr. Xu, there are 5 companies I am currently working with..."
Xu Liang waved his hand to interrupt him.
"You may be mistaken. I just said at the meeting that the specific investment is the independent responsibility of the fund manager.
In other words, which company you want to invest in is the right one.
What I want to know is how much money you want to raise next.
The head office is responsible for fund raising and then allocates it to you.
So, you need to think about it in advance, how much money can you use to absorb all the companies you have invested in before, and still have enough money to invest in the next two years? "
Chen Shijun felt relieved.
"Mr. Xu, I need to make a detailed assessment before I can get the answer. ”
"How long will it take?"
After Chen Shijun thought about it briefly, "One month."
"Then I will give you one month." "Thank you, Mr. Xu."
Xu Liang nodded and asked, "How is your relationship with Peter Thiel?"
Peter Thiel, founder of PayPal.
“Not bad. We often see PayPal’s old employees when they have dinner together.”
“Make an appointment for me.”
Chen Shijun was stunned for a moment and nodded. .
"Okay, why don't you go and do some work? Call me if you have an appointment."
After Chen Shijun left, Xu Liang turned his attention to Duan Yongping, the only one left.
“Old Duan, have you really made up your mind?”
Duan Yongping smiled and nodded.
"Thanks to Mr. Xu's care and I have learned a lot in Hanhua in the past few years, I have always been grateful. But I still plan to make a career on my own."
"I have long since I guessed that you, the blue dragon, would eventually fly for nine days, but I didn’t expect it to come so soon.”
"It's an exaggeration. You and Han Hua are the blue dragons flying in the nine heavens, and I am just a wandering water snake."
Looking at Duan Yongping who was lying down and being a young man, Xu Liang smiled.
"What are you going to do after leaving Hanhua? Venture capital or private equity?"
"Most likely private equity."
"Why?"< br>
"It saves trouble.
When doing private equity, you only need to read the financial reports and at most conduct an actual inspection.
There is basically no big deal after the investment.
Venture capital is different. It’s just the first step. The trouble is post-investment management.
Many founders of companies are young, but they are stubborn and overconfident, but they still feel that they are the worst. Smart and most correct.
You say one thing, and he can answer ten.
It makes investors feel like old ladies, it’s so tiring. "
Xu Liang smiled, which is why he rarely manages the venture capital department and is only responsible for private equity and hedging.
Too tired.
"Do you want to cooperate? A handful?
Hanhua acquires 30% of the equity of your private equity firm and then waives your non-competition agreement.
By then you will also have your first operational fund.
In addition, with Hanhua's shares, it will be much easier for you to raise funds from outside the company. "
Duan Yongping thought about it briefly.
"Mr. Xu, Hanhua can invest, but cannot interfere in the company's operations. ”
"Of course.
We are only responsible for investing money, not for management."
"It's a pleasure to cooperate."
Looking at the extended right hand, Xu Liang smiled road.
“Don’t worry yet.”
Xu Liang picked up the agreement prepared in advance and handed it over.
“Take a look.”
Duan Yongping took it and opened it, his expression changed.
“You are an old employee of the company, and you are very aware of the profitability of the company’s hedge fund department.
As long as you sign this contract, the investment institution you create in the future will not require any investment. You can be responsible for 5% of the profits of the hedging department," Xu Liangdao.
Duan Yongping did not answer immediately.
Only after I saw clearly the clause in the agreement that the 'hedge fund department' was responsible for its own profits and losses and was financially separate from the parent company, I became really excited.
Only by separating the finances can we avoid the loss of the hedge fund from affecting the parent company.
"Mr. Xu, there is no problem with the contract. I am willing to sign it."
Duan Yongping is more decisive than Xu Xin.
They, the insiders of Hanhua, know the profitability of Hanhua's hedge fund department better than the outsiders.
Super revenue of nearly 50 billion U.S. dollars a year, if one-tenth of it is operated in a partnership company in the future, it will also be 5 billion U.S. dollars in revenue.
After deducting the client’s investment share and paying taxes, there will be at least US$1.5 billion left.
5% of $1.5 billion is $75 million.
This money does not cost him any energy or capital, it is completely pie from the sky.
As long as you are not a fool, you will not refuse.
Moreover, if Xu Liang operates more funds through the joint venture company's account, the share he can earn will be even greater.
“It’s a pleasure to cooperate.”
Xu Liang smiled and stretched out his hand.
“A pleasure to work with.”
Although this cooperation will allow Duan Yongping to make a lot of money, he also owns 30% of the shares of the partnership company.
And Duan Yongping’s investment ability is also at the top level.
With US$1 million entering the market, the market value of the position exceeded US$14 billion 20 years later, and the average annual compound growth rate exceeded that of Lao Ba.
He will never lose money on this investment.
“By the way, where are you going to put your company?”
"Bay Area, I'm used to it here. The company has been established, and we plan to focus on investing in US stocks." Duan Yongping said.
Xu Liang nodded, "If you need help, call me."
"Whenever you are in need, I will not be polite to you."
(This chapter End)