Recently, Chuangyubang, a well-known entrepreneurship magazine in China, released the 2012 Angel Investment Report, which is the first domestic survey report on Chinese angel investors. The report shows that Chinese angel investors have gradually grown into a large scale, which plays a good role in promoting Chinese entrepreneurship. Moreover, the investment returns are very good, with more than half of them returning more than 30%. 18% of angel investors have returned more than 200%, and some star companies have returned tens or even 100 times.
Good projects pay back a hundredfold
According to Chuangyebang, the survey defined the condition of angels as investment in more than 2 cases (including), angel investment amount of more than 1 million yuan (including). The sample of the survey was angel investors who participated in the "First China Angel Investors Conference 2012" organized by Chuangyubang in April 2012. This was the first large-scale investment survey on Chinese angel investors in China. A total of 600 questionnaires were issued and 309 valid questionnaires were recovered.
According to the survey, angel investors disclosed a total of 747 investments since 2011. Because most angel investors in China have only started in the last few years, more than 70% of them have invested in less than five cases. Most projects involve less than 3 million yuan of investment (accounting for more than 60% of the total). The total investment amount of more than 1 million yuan and less than 5 million yuan accounted for 38%, and the total investment amount was 5 million yuan
Less than 10 million yuan accounted for 57 percent. 5.8 percent of them invested more than 100 million yuan.
Investment shares, the majority of investors adhere to the view is "share less than 30%, no holding". Investors' shares of less than 10% account for 30%, and shares of less than 30% account for about 65%. Somewhat surprisingly, angel investors accounted for nearly 20% of the total projects with more than 50% of the shares, which also reflects the lack of clear positioning of angel investors in China.
The report also detailed the investment returns of Chinese angel investors in recent years. The investment returns of Chinese angel investors are negative, less than one tenth. More than half of angel investors returned more than 30 percent. 18% of angel investors returned more than 200%. Compared with foreign countries, domestic angel investors expect a relatively short return period, hoping to get early returns.
Angel investing can pay off spectacularly if you invest in good projects. Recently, Lei Jun invested $100,000 in the company's Reunion Times listing in the US. Today, his shares are worth $113m at the opening price, a paper return of about 112 times. The company's founder Zeng Liqing sold Seventh Avenue to Sohu Changyou in 2011 for a profit of 100 million yuan, up from his initial investment of 2 million yuan.
Compared to the United States is not mature
The report also looked at the geographic distribution of angel investors and found that the distribution of angel investors is closely related to regional economic development. Angel investors from Beijing, Shanghai, Guangdong, Zhejiang and Jiangsu accounted for nearly 75 percent of the total. Among them, 35.92 percent were from Beijing, 14.56 percent from Shanghai and 11.97 percent from Guangdong.
According to the survey results, mobile Internet, e-commerce and consumer services are the most popular among angel investors in China. Computer software, media and manufacturing are also key areas of focus, with more than 20 percent of angels having invested in these sectors. From the distribution of investment projects, a small part of Chinese angel investors began to invest in overseas projects, which accounted for 3% of the total number of projects. The report also analyzes the background information, investment judgment criteria, investment style, investment projects and other important information of more than a dozen famous angel investors, including Lee Kaifu, CAI Wensheng, Lei Jun and He Boquan.
In addition, the report also makes a comparison between China and the United States angel investment. Compared with China, the situation of angel investment in the United States has been relatively mature, most angel investors have very keen and professional investment ability, and the investment amount is less than 250,000 dollars, and the return is more stable, such a volume of investment return can often reach more than 5 times. He Boquan, a famous angel investor, believes that compared with the United States, there are three differences in angel investment in China. First, there is no professional information platform to tell Chinese entrepreneurs how to find angel investment; Second, the recognition and respect of angel investment is not enough, and the overall show is the disdain for capital; Third, China is now in a period of high entrepreneurial enthusiasm and numerous opportunities, but the number of angel investors is far from enough.
It's not just giving money to entrepreneurs
The term "angel investment" originates from the United States. It refers to the charitable behavior of wealthy people who fund some performances with social significance. Later, angel investing was extended to an early stage investment in a high-risk, high-yield new business, and the wealthy people who made the investment were called investment angels. Because most angel investors have entrepreneurial experience, they can also bring successful experience and guidance while investing in entrepreneurs. Facts have proved that angel investors play a great role in promoting entrepreneurship.
For example, RON Conway, a famous angel investor in the United States, is an early investor in Facebook and Google. He has invested in 500 startups in total. His extensive investment strategy also makes him join the power circle of Silicon Valley and become one of the most powerful people in Silicon Valley. Some people call him a "startup rescuer" who will not hesitate to support his portfolio companies when they are in trouble.
Angel investors in China can be divided into full-time and non-full-time types. Non-full-time angel investors are composed of entrepreneurs, company executives and a few professionals (such as lawyers and accountants). Whether full-time or non-full-time angels, most of them have been entrepreneurs or are still entrepreneurs. They understand the hard work of starting a business and how it is managed and operated. The capital and experience accumulated through entrepreneurship are also the most valuable capital and resources for their angel investment. According to the survey report, 72.82 percent of the respondents were founders of their companies, 47.57 percent were ceos of their companies, and 36.89 percent were chairmen of their companies. In recent years, there has been a trend of institutionalization of angel investment. Many institutions have also begun to enter this field, such as Innovation Works and Legend Star Angel Investment, which are relatively famous angel investment institutions.
In addition to investment, angel investment gives start-up help, the role of entrepreneurs is also great. For example, Lenovo Star Angel Investment, based on Lenovo's 28 years of growth in science and technology entrepreneurship and more than 10 years of investment experience in the field of science and technology, pioneered the mode of "entrepreneurship training + angel investment", combined the advantages of professional investment institutions and training institutions, and further integrated various social resources. To comprehensively solve the problems of talent, capital and resources faced by scientific and technological start-ups and the industrialization of scientific and technological achievements, and to provide entrepreneurs with free entrepreneurship training. The first phase of Lenovo Star Angel Investment Fund is 400 million yuan, focusing on the investment of advanced manufacturing, medical health and TMT early technology enterprises. The average investment of each project is more than 5 million yuan, with more than 20 full-time staff. From the perspective of the volume and average investment, it belongs to the super angel in China. So far, it has invested in dozens of start-ups such as Micro Nano Core, Tin Man and Hengtu Technology, with a cumulative investment of nearly 200 million yuan.
According to Chuangyebang, relying on powerful media and startup platform resources, Chuangyebang has also set up Chuangyebang Angel Fund to invest in startups. By virtue of Chuangyebang Platform and its affiliated Chuangyebang magazine, Innovation China Competition, Fast Carp technology blog and other resources of investment institutions, media and other parties, we provide all-round value-added services such as media publicity and follow-up financing for investment enterprises.
