King of Capital

【Zhan Xinjia: Last year's 50 billion US dollars + 100 billion RMB have been spent, all the money is ready, I want to raise funds! 】

"From VC to PE, the three-year growth history of Grapefruit Capital: What did Xie Jingxing talk about in his letter to investors?"

[What do you think of Grapefruit Capital investing in 147 projects in one year? In the context of a capital shortage in the capital market, it is expected to launch a dual-currency fundraising of 60 billion + 90 billion US dollars/RMB? And what is the possible investment direction in the future? 】

Every word counts. Xie Jingxing wrote a letter to all investors of Grapefruit Capital, warming up the fundraising plan of RMB 450 billion this year.

As expected, it became a hot topic the next day. A careful observation revealed obvious differences in focus among the major Internet platforms, with Weibo still focusing on the old pure entertainment theme.

My husband is so awesome, I also have to work hard to pass the exam to be worthy of him!
There is also a new trick. He printed out Xie Jingxing's handsome photo overnight and placed it on the bedside. From now on, he will kiss it every day when he opens his eyes to bring in good fortune.

Xiaohongshu has a high-end temperament. Last week, a classmate suggested that I send my resume to Xiyou, but I didn't apply after passing the interview of a buyer with a Chinese prefix. I was so sad.

First floor comment: Why are you crying? Companies with Chinese characters in their prefix must be state-owned enterprises, right? Is grapefruit better than a state-owned enterprise?

Blogger: Not really. The overall strength of the platform is definitely our company (it is not convenient to disclose the company's name, I can only say that our company participated in the 100 billion RMB fund of Xiyou last year). Market-oriented institutions are willing to pay employees, especially when other institutions have a management fee of 2%+20%, while Xiyou has a management fee of 2%+25%. I envy them so much!

Comment on the second floor: Sister, what does 2%+25% mean? Can you make a lot of money?

Comment on the third floor: 2% management fee + 25% profit sharing. You know that if Xiyou raises 450 billion, it can just collect 9 million management fees each year, and the remaining profit sharing... too much to calculate. I think I guessed which company the blogger is from. Don't envy me. You won't have much hope if you submit your resume to Xiyou.

Comment on the fourth floor: So why can Xiyou collect 5% more commission than other companies?

Comment on the fifth floor: The one that sells insurance. The venture capital business is two Jinsha Rivers away from grapefruit. Send a resume to the moon 2333.

Dear, the original text of your comment has been deleted, please look at other content...

The sister on the fourth floor didn’t wait for a reply to her comments, so she opened Zhihu and found the answers to the relevant hot issues.

Don’t read the long article, but I will tell you the key points are summarized in bold at the end: Xiyou has money from its own business, and the manager acts as a subordinated fund, so it can ask for a share of the high returns.

I can recognize each word of a short sentence separately, but I can't understand them when they are put together. This is the case with several highly-rated answers.

Analyzing the feasibility of Xiyou's plan to build an investment ecosystem platform, the riddler said that the original letter from Xie Jingxing did not mention Didi, its star project, which was meaningful. Sometimes silence represents attitude.

We are used to seeing fund managers giving investors all kinds of superficial and exaggerated summary reports. His ten-thousand-word article, which starts from the future development trend of the VC/PE industry itself and extends to the macroeconomic situation and venture capital direction, seems particularly sincere.

If you can truly understand this letter, you will be inspired to some extent. This is what the industry benchmark should be like. Some makeshift teams that manage investors' money and think they are the bosses should follow suit.

Perhaps Xie Shaoshuai intentionally started with the "obscure" platform strategy to shield those impatient onlookers and return investment to its rational and rigorous nature. If he could appear on fewer gossip hot searches, he would be even more admirable...

I tried to be profound, and after reading several similar answers, I finally found a yellow V certified answer, which is straightforward and easy to read:

Shao Shuai has already clearly explained the future investment direction in his original article, and the previous answerers have also made quite detailed analyses, so I won’t embarrass myself by repeating them.

Just talking about the second question, I have worked on a project with the people from Grapefruit, and at that time I just thought they were extremely busy and super super rich.

It took half a month from meeting with the founder to the investment decision-making meeting, signing the agreement, and making the payment. The efficiency was so high that it brought tears to my eyes. I have been in this industry for seven years and the last institution like this I have seen was Sequoia.

Everything else can be fast except the delivery and payment step. Small institutions cannot afford the three rounds of review from investors to risk control. It takes at least a month and at most three months for me to give the money to the invested project.

But on the other hand, while Xiyou is very busy with work, he also places great emphasis on lead investment and post-investment management, which often results in us receiving their email replies in the early morning.

To be honest, this is not common in the industry. As an investor, you should either focus on your own business or stop pretending to be a big shot if you want to serve the invested projects well.

The founder, Xiyou, and several other investors all felt awkward about the project we were working on at first, but things gradually got better after they adjusted and smoothed out the rhythm of the cooperation.

Now that I see that they invested in 147 projects last year, I have a deeper understanding of their ideas. It makes sense for them to be busy.

With an average of one investment every 2.48 days, this is probably the most active institution in the market, and only Sequoia can be compared with it. It will also set a record, at least this year when capital is receding, it will be difficult to keep up.

Xiyou mainly focuses on both sides of the A round of investment, often leading the investment in projects such as NIO, which has a single round of financing of hundreds of millions of dollars. In the mid- and late-stage financing rounds, it focuses on making large bets on a small number of projects. Typical examples include Meituan, Weying Times, and LeTV.

What’s also interesting is that Xiyou and Taihe have jointly invested in 42 projects. They are undoubtedly close brothers. However, the second largest investor is not their close comrade Tencent, but Tianan Investment.

The organization has participated in 18 joint investment projects. The founder of this organization, Zhang Zetian, has actually interned at Xiyou. It can be seen that the relationship between the apprentice and the students is deeper than that between the students and their partners.

In summary, an investment system has been established. Taihe will be the first to take a bite of any good project, and Xiyou, which has survived the angel seed round, will enter the market with a big hand. Tianan Venture Capital and Juntai Direct Investment and other small brothers are also working side by side.

In this case, although there are occasional rumors of unpleasantness with some invested projects, one fact is almost certain to this day: no startup company will refuse investment from Grapefruit Capital.

If a company that Xiyou has led the investment in has vacancies for follow-up investment, please contact me. I can reply to emails overnight!
——Clicking on the answerer’s profile picture, there is no information that can indicate which company he is from.

Xie Jingxing returned to the homepage and gave him a thumbs up. This answer basically and comprehensively summarized Xiyou’s performance last year and its current market niche.

In the hard technology sector, there are DJI drones and Horizon robots; in e-commerce, there are maternal and child verticals such as Babytree and Pinduoduo; in the entertainment sector, Miao Nan was finally unblocked, with a single investment of US$4000 million in Kuaikan Comics and RMB 1 million in Paper Games.

The remaining ones include the trendy toy brand Pop Mart, the stranger social networking brand Tantan, and local life investments centered around New DAE, which are mainly concentrated in catering services, such as Tai Er Pickled Fish.

With continuous investment and new entrants, as long as it is a good project, you can always see that Grapefruit Capital has already entered the market first in any track.

If in the past, they could only compete with Sequoia in a few star projects, now they can be compared in all aspects to see who is stronger and who is weaker, and compete for the top spot in the domestic venture capital institutions...

In fact, the pace was relatively slow in the first half of last year. With two phases of dual-currency funds of 50 billion and 100 billion in place, the investment rhythm changed unknowingly.

The most obvious factor is that as the scale of managed funds grows, the share of investment income is destined to be more focused on the absolute value of returns rather than the rate of return on investment at the operational level of Grapefruit Capital itself.

投1元赚100元分到手25元，投1000元赚1000元分到手250元。

Xie Jingxing didn't need to speak up about how to choose. The whole team would adjust the balance and positioning from the bottom up. Currently, Xiyou has five venture capital funds, managing a total of US$57 billion and RMB 130 billion. If it wants to dominate, it must maximize the efficiency of fund utilization.

Where there are projects there is money, and with enough money one is naturally qualified to choose projects, and the trend is spirally upward.

Of course, the absolute value of investment return and the rate of return complement each other. If you make a horizontal dynamic comparison, being better than your peers is really awesome.

"Mr. Xie, the leaders from the HKMA and CSRC have arrived."

Xie Jingxing was brushing up the answers with great interest when Chen Xi knocked on the door and came in with six executive jackets.

He only had time to lift his butt off the chair before the leaders of the two departments walked quickly to the desk side by side and shook hands and greeted each other enthusiastically.

"No need to find a special place. You guys go out first. Wang Ke and I will talk to General Manager Xie first." One of the familiar faces who had met several times instructed the staff.

Xie Jingxing waved his hand: "No, the conference room is ready, follow your investigation process."

"We just come here to ask for a cup of tea. Mr. Xie, please don't embarrass us." The familiar face corrected with a laugh.

The 20 billion quantitative fund under Grapefruit Capital had a return rate of 175% last year. Against the backdrop of the stock market crash, this data soared to the sky.

Originally, it was just a moment of admiration from colleagues in the industry, but Xie Jingxing's personal reputation was too loud and was widely reported by the media, which inevitably led to suspicion of illegal public promotion of private equity.

The relevant regulatory authorities are in great trouble.

In the beginning, Xiyou brought a huge amount of funds into the market in order to rescue the market, so it can't be considered a mistake to make money later; it was the official media that led to the honors given to Xie Jingxing, and now his every move is magnified by public opinion, so there is nothing wrong with that, right?
"All funds are traceable and we do not have any media operating expenses."

Everyone sat down in the conference room. Grapefruit's legal director and risk control director dealt with the matter. The two regulatory leaders asked questions. The staff members had received professional training and generally did not laugh.

The lack of operating expenses in the financial accounts means there is no violation. It's like you don't care whether I have leek leaves stuffed between my teeth or not. Anyway, I didn't have money in my pocket to buy breakfast, so I didn't eat leek dumplings secretly in class.

It is the responsibility of the regulatory authorities. Xiyou needs to raise funds next, so both parties have to follow the process meticulously.

Xie Jingxing was too lazy to talk. He opened his laptop and pretended to record the key points, but in fact he continued to surf the Internet and browse Zhihu.

Several high-quality answers show from multiple angles that no matter whether you approve or deny the strategic adjustment direction of the Xiyou platform, there is nothing wrong with it. The exaggerated operating conditions prove that the market position needs no further explanation.

In this way, large-scale fundraising will be a natural outcome.

There is nothing else to say, in a market depression environment where capital is retreating, the Matthew effect is significantly catalyzed, and the leading institutions will continue to be strong.

Sequoia has its headquarters in the United States, and Grapefruit has the Columbia University endowment fund. If US dollar investors completely lose interest in the Chinese venture capital market, their last investment before exiting the market will inevitably be between these two companies.

As for RMB fundraising, state-owned assets, insurance funds and banks have different policy orientations. The specific fundraising situation depends on what you want to invest in and whose money you choose to get.

Finally, two years ago when the venture capital industry was booming, I thought Shen Nanpeng was the king of venture capital. Now things are changing, and Xie Jingxing, who is 24 years younger than him, is walking up. I will wait and read this answer in ten years, hoping that there will be a final conclusion by then.

[Boss Shen, stop testing me and go to the main account! I don't want your throne, we have a lot of joint projects (funny expression).]

Xie Jingxing was typing away on the keyboard to comment on this answer, nodding slightly as if he was listening to the two supervisory leaders sitting opposite him.

"Mr. Xie, then let's stop here today. I'll come back to bother you again when your fundraising plan is approved." The one with a familiar face made preparations in advance.

Xie Jing Xing calmly closed the computer, stood up and said seriously: "You are welcome to come anytime. Thank you for the support of the leaders for Xiyou's fundraising business."

"You're welcome. The overall market environment is warm but not cold. We need Xiyou to step up and set an example to build confidence among investors. Apart from a little insignificant approval support, there is really little we can do."

Both leaders expressed varying degrees of emotion, but Xie Jingxing was relaxed and sent them all the way to the company gate.

The market capitalization cold wave does exist. It is impossible to say that grapefruit is not affected at all, but it is not the worst time yet. Three years later, five years later, seven years later, the hard times are still to come.

If you think about it carefully, it is already March 2016, is 3 still far away?

I couldn't sleep the whole night checking the accounts in Singapore because my back was chilled. The low cash flow reserves accounted for only half of the chill, and the other half was the disorderly expansion of the entire financial empire.

As luck would have it, Liu Qing helped Xie Jingxing strengthen his determination to adjust his strategy. He returned to Beijing and smoked all night, not just to convince him to admit that the investment in Didi had failed.

It's more about restraining your own desires.

NIO, Xpeng Motors, Lalamove, Mobike, Pony.ai, CATL... and the currently discussed Ideal Auto, ranging from new energy vehicles to more direct artificial intelligence travel solutions, and even electric assisted bicycles.

There are many weapons in the Xiyou smart travel investment matrix, but the investment share is low, and there is no heavyweight unicorn like Didi to bring resources together.

In this case, let's temporarily delegate the strategic position of the entire sector. Those who hold the currency can invest in whoever can run in the future. There is no need to force the issue.

It would be better to use that free time to consolidate oneself, streamline the existing investment portfolio, and adjust the messy business lines.

This is the new journey that Xie Jingxing told Liu Qing about. Today he is being questioned by regulators, and tomorrow he has to go back to his hometown in Northeast China to line up with the leaders. It is the auspicious day for the establishment and listing of Jichun Bank.

Then he went to Beijing, where LeTV announced its annual report with huge losses. He had to shed a few tears of grievance at the press conference, feeling cheated.

By the way, I can make a few thousand dollars from Yu Nian and introduce strategic investment. This woman always treats the symptoms but not the root cause to quench her thirst. She threatens that if he doesn't provide door-to-door service, she will go to the nightclub to drink.

The second batch of Yunhe Logistics' industrial parks have been approved one after another, and Xie Shaoshuai also got to fly around, take photos with local leaders, and borrow some money to operate high-leverage operations.

Counting on his fingers, none of these industries will be spared in three years. If he doesn't plan ahead to prepare for risks, will he end up hanging himself in the gym with a yoga rope? (End of this chapter)