My Age of Investment

Chapter 761 Capitalization of Education

Rao Lei nodded to Xia Jingxing with a smile, cleared his throat and said, "The company's main investment targets are all concentrated in the Internet, such as Qihoo, Tudou, Autohome, Kugou Music...

At present, these companies have achieved impressive results in their respective fields.

If there is no accident, these companies will continue to develop, and they should be able to enter the capital market in the next few years, and the company can also usher in a wave of harvest.

I think that at this stage, in addition to doing a good job in the post-investment management of these companies, the most important thing is to open up new investment fields, which are no longer limited to the Internet. "

Xia Jingxing nodded, and gave Rao Lei a positive look.

If the three major portals are regarded as the first generation of Internet companies in China, he was still in middle school at that time, and he could not catch up with the investment bonus period. Later, he played a wave of selling high and buying low in the secondary capital market. At present, all the value of use is basically squeezed out. up.

Except for Netease, the other two companies don't need to pay attention at all.

The second-generation Internet companies, namely BAT, also have their own layouts.

The batch of Web 2.0 companies established after 2004 have basically all failed.

It can be said that before the outbreak of the mobile Internet, he basically swept over all valuable Internet companies in China.

Indeed, the wool of the domestic Internet is almost bald by him.

Receiving Xia Jingxing's affirmative look, Rao Lei continued: "I have now discovered a new industry worthy of opening up an investment battlefield."

"Oh, tell me."

Xia Jingxing looked at Rao Lei with a smile. His senior brother has not achieved any outstanding performance since he joined Vision Capital for nearly a year.

He is not in a hurry, after all, Rao Lei is not a venture capital practitioner, it takes a certain period of time to adapt, and it is impossible to achieve results immediately.

However, he knows that Rao Lei is a person who has high demands on himself, and he will not always do nothing.

He is also looking forward to Rao Lei's outstanding investment achievements and achievements in the field of venture capital.

At this moment, he very much hopes that Rao Lei can come up with some novel viewpoints, and then he can help them.

Otherwise, he wouldn't be able to take care of him. After all, this business still relies on skills to make a living.

Others also turned their attention to Rao Lei, wanting to hear his opinion.

Glancing at the people present, Rao Lei smiled and said, "I wonder if everyone paid attention to a piece of news from the capital market a few days ago?

An education company called "New Oriental" was listed on the New York Stock Exchange.

Issued 7.5 million ADSs, raising US$112.5 million.

This is the first education and training company in mainland China to be listed overseas. It is a milestone and a bright light for the entire education and training industry. "

Colleagues around nodded one after another, expressing that they had heard the news.

Xia Jingxing smiled. On the day New Oriental went public, he was in New York. He didn't go to greet the three Chinese partners, but arranged for Liu Hai to buy a part of the stock to express his support.

In addition, during the roadshow of New Oriental, Goldman Sachs, the underwriter of the listing, also allocated a part of the subscription shares to Vision Capital, that is, buying at the issue price, which is equivalent to issuing new shares.

At this time, Chinese concept stocks are very popular in the U.S. stock market, and there is almost no such situation as a listing breakout, and there is a lot of room for arbitrage.

As long as it is not a Chinese concept stock with a poor foundation, Vision Capital will go to Wall Street investment banks to get some internal benefits.

Therefore, Xia Jingxing is quite familiar with this company.

Rao Lei continued: "Based on the issue price, although the market value of New Oriental is less than US$600 million, the valuation of the A-round investor Tiger Fund was only a little over US$200 million.

After investing for more than a year, I earned nearly twice the income, which is a pretty good deal.

Moreover, Tiger Fund invested more than 40 million U.S. dollars in the A round, and the absolute value of the return on investment is very large, close to 100 million U.S. dollars.

So little time, so much reward!

I judge that not only domestic VC institutions will pay attention to the education and training industry, but even some foreign funds will also set their sights on this emerging market.

Because everyone knows what an emerging market means, an untapped gold mine. "

Everyone looked thoughtful, and they were all seriously thinking about the new point of view raised by Rao Lei.

Xia Jingxing can directly conclude that Rao Lei's analysis is correct and quite far-sighted.

The significance of New Oriental's listing is very far-reaching. It has not only encouraged entrepreneurs in the education and training industry, but also attracted capital attention to this virgin land.

Then, the capitalization of education kicked off.

Concepts such as K12, English one-to-one tutoring, and online school have been proposed one after another. Anxiety in the education field is rampant, and parents have embarked on the "chicken baby road".

This has greatly increased the cost of education and has become one of the three big mountains in the new era. The slowdown in population growth rate has a major relationship with it.

Looking at it further, this is the cause of the expansion of college enrollment in 1999, and it has been forced down one by one. Parents empty their pockets and send money to education and training institutions for their children to have a good future.

Chinese people have always attached great importance to education and believe that learning can change one's destiny. It is not difficult to explain the booming business of education and training institutions.

After the development, the Internet giants with traffic in their hands are all eyeing this piece of fat.

"So, the education and training industry is about to usher in a golden period of development?" Fu Jixun looked at Rao Lei and asked.

Rao Lei nodded, "Yes, whichever industry capital invests resources in, that industry will usher in great development."

"President Xia, what do you think?" Fu Jixun looked at Xia Jingxing again.

"What do you think, hurry up and grab the bid!"

Xia Jingxing didn't know if the country would hit the education and training industry hard in the future, but it definitely wouldn't at this time, and he couldn't reverse the trend, so he could only rush in to earn some money to support the development of hard-core technology in the future.

This is better than being earned by foreign capital, and the funds flow to foreign sovereign wealth funds, pension funds, and university funds.

The money that the Chinese spend desperately raising their children is all used to support the treasury of foreigners, the retirement of foreigners, and the construction of universities for foreigners.

"I've found the target."

Rao Lei said with a smile, "It's in the Zhongguancun Science and Technology Park. There is a small company in it. It was founded by two Peking University students. The name is very good. It's called "Talent Future". Have a great future."

Xia Jingxing was a little surprised, this attack was more ruthless than him, and he immediately grabbed the big one.

"Is it reliable? Have you investigated it in detail?"

Rao Lei nodded towards Xia Jingxing, "It's very reliable, this is the best education and training institution I've found all over the capital.

First of all, the two founders are all masters of Peking University, and their academic qualifications are very good.

Secondly, the founder was working as a tutor when he was a graduate student. He taught a primary school student with above-average math scores to get 100 points in every test. Then the parents kept introducing him to friends' children. In the end, he had no choice but to do it in real life. Became a training class...

In this way, after the two founders received their master's degrees, they pooled together 100,000 yuan to start the company in 2003 and officially started corporate operations.

They are quite Internet-minded, and they created their own website at that time, called Aoshu.com.

In fact, they only wanted to teach mathematics at that time, and they never thought about how large-scale it would be. Last year, they changed their name to TAL and began to engage in extracurricular tutoring for primary and secondary schools.

In the end, I think they are quite principled. Instead of using the traditional method of hiring teachers according to the number of students enrolled, they recruit as many students as there are teachers, and never recruit more.

In the past two years, because the management and service could not keep up, they decisively closed two teaching sites.

In this business, word of mouth is very important. The two founders have a long-term vision, do not seek short-term profits, and do not kill chickens to get eggs.

I think their quality should be able to create a relatively influential educational brand, which is worthy of our investment. "

Xia Jingxing asked: "What are the names of the two entrepreneurs? Have you ever contacted them? What is their attitude towards capital?"

"Zhang Bangjin and Cao Yundong are both young, one is 26 years old and the other is 27 years old.

Both are very honest young people. I met them once and talked about investing.

The two of them, for capital..."

Rao Lei paused and said: "There is a bit of resistance, they want to be a small and beautiful training institution.

Moreover, the profit model of training institutions is very clear, they do not have any financial pressure, and do not need financing. "

"Isn't New Oriental going public? You can talk to them about this matter." Xia Jingxing said lightly.

Rao Lei nodded, "Okay, then I'll talk to them again tomorrow."

After finishing speaking, he did not forget to add, "So many venture capital institutions are about to enter the market, we have to make plans early!"

Xia Jingxing said with a smile: "Okay, I understand, you will take the lead to set up an education and training industry investment group within the company."

Rao Lei was overjoyed and nodded hurriedly.