Core points

1. The situation of investment and financing in the new economy in 2019 is still in the doldrums, and the quantity and amount of investment and financing continue to decline compared with last year.

2. Enterprise services and medical and health care are popular in the capital winter.

3. BAT giants invest cautiously, but the layout of enterprise services becomes a common choice.

4. The era of money burning is a thing of the past. Capital favors well-managed enterprises, and funds are being concentrated to the head enterprises.

The cold winter continues.

In 2019, the theme of the venture capital circle is still inseparable from key words such as "bad environment, difficult entrepreneurship, difficult financing, and investors do not pay easily".

Statistically speaking, this is indeed the case.

This year, the investment situation in the primary market in the new economy continued the overall downturn in 2018, and the number and amount of investment events continued to decline compared with before. According to IT orange statistics, as of December 15, the number of public investment events at home and abroad this year was 8257, down 28.31% from the same period last year, and the amount of investment was 2.583231 trillion yuan, down 19.01% from the same period last year.

What is even more depressed than investment is entrepreneurship, with 1762 new economy companies added this year, down from 7897 last year, while only 307 new companies were voted, accounting for 17.4%, and 1617 new companies were voted last year, accounting for 20.4%.

The overall situation of venture capital is not optimistic, and because of this, Shensheng counted the specific data of the primary market this year, in order to show the true face of the market through the figures, and try to find the temperature in the depressing winter. Find patterns in the flow of funds and the choices of the giants.

Note: the sources of the following statistics are all IT oranges, and the scope of investment events is domestic. unless otherwise specified, the statistical range is from January 1 to December 10, 2019.

Where did all the money go?

In the cold winter, there are still industries showing vigorous vitality. Deep ring found that corporate services and health care are the hottest industries this year, both in terms of the number of financing projects and the amount of financing.

The hot enterprise service market has many signals, whether the Internet giant strategic adjustment plus To B business, or the current needs of enterprises for digital transformation, are attracting more and more capital into this market. According to statistics, there were 722 investment and financing events in the primary market in 2019, with the financing amount reaching 115.209 billion yuan, and the two data ranked first in all industries.

In the subdivision track, industry information and solutions, data services are the most favored by the capital enterprise service sub-industry. In November, Tenglong Holdings Group, a customized data center service provider, received a round of financing of 26 billion yuan. The round of investment, led by Morgan Stanley and China Nanshan Group, was the largest investment and financing event in the enterprise service industry this year.

In the cold wind of the capital market, the medical and health industry is still popular. With China's gradual entry into an aging society and the improvement of public health awareness, the demand of the medical and health industry is increasing day by day. In addition, the policy is also positive. The HKEx lowered the listing threshold for biomedical companies in 2018, and Science and Technology Innovation Board also strengthened its support for the listing of biomedical companies.

This year, there are a total of 534 investment and financing events on health care in the primary market, with a total financing amount of 99.299 billion yuan. It is worth noting that the health care industry segment track biotechnology and pharmaceuticals, in all the sub-track ranking, both in terms of the number of financing projects and the amount of financing are at the top of the list. On specific large-scale investment and financing events, in November this year, BeiGene, Ltd., a biomedical enterprise, received a strategic investment and financing of US $2.7 billion, invested by the global biopharmaceutical giant Amgen Inc.

Other popular tracks in the corporate services and healthcare industries are IT infrastructure, medical devices and hardware. Although some industries as a whole are not as popular as the two mentioned above, the performance of their subdivided venues in the cold winter is also noteworthy.

The number of financing projects in the hardware industry is second only to corporate services and health care, in which chip semiconductors, consumer electronics and robots are the subdivision tracks with the largest number of financing projects. The education industry has also made some gains in the number of financing projects, among which early childhood education and quality education are the subdivision tracks with the largest number of projects.

There have been several large-scale investment and financing events in the entertainment media industry, including video / live broadcast, media and reading subdivision tracks.

Against the backdrop of the continued strength of short videos in the pan-entertainment field and the rise of live streaming, the video / live track has also ushered in the best part of the year. According to statistics, this year, there were 34 investment and financing incidents in the primary market about the video / live broadcast industry, with the financing amount reaching 22.44 billion RMB, the largest of which came from the $3 billion F round financing to Kuaishou Technology led by Tencent. The investors include Sequoia Capital China, Yunfeng Fund and so on. This may be the last round of financing before Kuaishou Technology goes public, and Kuaishou Technology is valued at $28.6 billion after the investment.

In the media and reading subdivision track, Zhihu Inc. completed a US $434 million F-round financing in August, led by Kuaishou Technology and Baidu, Inc., while the original investor Tencent and Today's Capital continued to follow. Block chain media such as Mars Finance and Liande are also popular investments under the track.

The high amount of financing in the three major areas of local integrated life, integrated logistics and express delivery services are all related to BABA. In BABA's Q3 financial report for fiscal year 2019, BABA's local life service company has achieved independent financing of more than $3 billion. The investors are BABA, Softbank Corp. and other third-party investors. In November, BABA Group announced that it would invest 23.3 billion yuan through capital increase and purchase of existing shares, increasing its stake in Cainiao Network from about 51% to about 63%. In addition, BABA also invested in Shentong Express twice this year to speed up the layout of the express delivery industry.

The giants have a good heart.

BAT is still the most generous player in the primary market, but even BAT has reduced its net-casting efforts compared with the previous year.

According to "Shenxiang" statistics (the following statistics do not include investment cases of related companies, such as Ant Financial Services Group's investment is not included in BABA, Tencent Music Entertainment Group's investment is not included in Tencent, etc.), 2019: BAT invested in a total of 127 companies in the primary market, other major Internet companies, JD.com invested in 14 companies, byte jump invested in 13 companies, Meituan invested in 3 companies.

Specifically, of the 127 companies invested by BAT, Tencent sold a total of 71, which is still the most aggressive giant in the investment field.

Tencent

From the point of view of the field, Tencent shoots most frequently in the two tracks of entertainment media and enterprise service, which is closely related to Tencent's main business, and enterprise service is the direction that Tencent is investing vigorously. In addition, Tencent appeared on the investor list of almost all unicorn companies this year, including key players in the vertical field of the Internet industry, such as Free, Zhuan, VIPKID, Zhihu Inc., Kuaishou Technology, KE Holdings Inc, Gao Si Education, and so on, have accepted investment from Tencent.

On the whole, Tencent's sense of smell is still keen, while carrying on the active layout around the main business, the potential track in the industry has not been missed.

Alibaba

Compared with Tencent, BABA's investment in 2019 is much less, only 24, of which the logistics industry has the most investment, all of which are large investments in logistics companies around Cainiao; in addition, corporate services, real estate services and entertainment media are BABA's key investment tracks.

On the whole, BABA's investment strategy is similar to Tencent's, around the main business to consolidate the competitive moat through investment, while laying out the future direction. In the context of the disappearance of Internet dividends, BABA's overall investment is more focused, and the field distribution is more balanced.

Baidu

Baidu, Inc., who is still seeking to rise, invested in 32 companies in 2019, including 12 for Baidu, Inc. and 20 for Baidu, Inc.. Like Tencent and BABA, Baidu, Inc., which mainly focuses on Baidu, Inc. 's main business, this year's preferred track is enterprise service, and the other is education, with a more balanced distribution of investment in other areas.

What is particularly noteworthy is that Baidu, Inc. has successively invested in Zhihu Inc., Youzan, Uncle Kai storytelling and other projects this year, all of which are laid out around his Baidu, Inc. mobile ecology. In the context of the byte jump officially launched to search for the counterattack stronghold, the trend of Baidu, Inc. investing in rich products and content to consolidate the main business moat is becoming more and more obvious.

Compared with BAT, JD.com, byte beat, Meituan and other head Internet companies are more cautious in their investment. JD.com (excluding JD.com, math and JD Logistics, Inc.) invests in 14 enterprises and byte jumps in 13 enterprises. Enterprise service is also the common concern of the two giants.

In addition to enterprise services, JD.com 's investment is mainly around its main business, e-commerce, while byte jump investment is mainly around entertainment and games, which is the current key direction of byte beat, especially in the game field. fast entry through capital means is an important means to accelerate the game business, with byte jump increasing the intensity of mining lingering value through games. Foresee that the capital action of byte jump in related areas will also accelerate.

In comparison, Meituan commented that the investment behavior in the past year was more cautious, mainly around the main business and upstream and downstream industrial chains (local life, agriculture, hardware).

On the whole, the investment strategies of the Internet giants are generally the same: consolidate the moat of the main business, and expand the layout of emerging business-enterprise services have become a common choice. It is also worth noting that under the background that 5G has been officially commercial, the giants are silently concerned about the evolution direction of the next generation terminals-Tencent, BABA, Baidu, Inc., JD.com, Meituan, byte runout have all invested in hardware companies, such as:

After the mobile Internet dividend opened by smartphones has disappeared, the giants are already looking for the next generation of terminals to enjoy the dividend of technological progress. For now, smart home is the most watched subdivision track.

At the same time, it is not hard to see that as the mobile Internet dividend disappears, the giants have become more cautious. According to statistics previously made by Shenxiang, the number and amount of companies invested by BAT in 2018 are:

Compared with last year, investment in the three BAT companies has obviously tightened rapidly, but judging from the companies they have invested in, the giants still have a keen sense of smell and a wide range of tentacles. Under this style, after BAT has become the exit channel for many players in the domestic venture capital field, it is obviously not good news for the giant to tighten the money bag. However, in the context of the industry as a whole stepping into the slow lane, this situation is likely to continue.

Burn money? The road is closed.

Overall, the primary market is still cold and windy this year, but from a quarter-on-quarter point of view, the downward trend of investment and financing in the new economy is gradually leveling off, and the bottom of the venture capital market is formed.

What is the rule of survival in the cold winter?

Zhang Ying, a start-up partner of Matrix Partners China, has issued a cold winter warning several times. At an internal sharing meeting of Matrix Partners in June this year, Zhang Ying said, "blindly optimistic, still pursuing high valuations, still complacent with a little bit of her achievements, and still expanding subsidies. Cash has not been adjusted fiercely for less than six months, financing has not yet become the first major event, and is still fantasizing about the huge support of investors, which are all symptoms of death. "

The era of money burning is over, both at home and abroad. Softbank Corp. as the representative of the big bet, in the hope that the winner-takes-all aggressive investment style is no longer sought after, WeWork valuation avalanche, IPO halberd example reminds the primary market cautious investment, cautious valuation.

For entrepreneurs, the era of relying solely on concepts and PPT to get investors has passed. Capital requires enterprises to have a moat and pay attention to management and cash flow. "We will only continue to increase support for potential companies where the data continues to be strong and the founders are obviously growing fast. For the warp and weft companies that have made the wrong investment and we are completely disappointed, we will no longer waste more new money. "this is Zhang Ying's warning to the investment team shared on Weibo Corp this year.

Capital is becoming more and more cautious, at the same time, the corporate head effect is becoming more and more significant. Taking a closer look at the investment and financing events of many popular subdivided tracks, we can find that most of the funds are concentrated in the head enterprises. The cold wind has blown down the small and medium-sized enterprises that have not yet built a moat, but the leaders in the subdivision track are still favored by capital and giants.

In the favored field, as the mobile Internet dividend of To C gradually disappears, betting on the Internet industry has become a common choice for the giants. Thanks to the clarity of the concept of the industrial Internet, the To B field is the biggest hit in 2019. The giants give money to the hot To B field, to the leading enterprises that can consolidate their main business, and to the new businesses that can bring technology dividends.

However, with regard to capital's enthusiasm for To B and the cold winter repeatedly mentioned in the venture capital circle, there are also investors who are going against the wind. Gan Jianping, a senior investor and founding partner of Ganze Capital, said in an interview with 36Kr Holdings that the cold winter has been magnified, and the entrepreneurs he has come into contact with this year are still very active and do not feel the cold winter. "investors drive their own air-conditioners. Of course entrepreneurs dare not come near you. "

In addition, Gan Jianping remains optimistic about To C Internet consumption, believing that China's younger generation without war and poverty will dominate the new trend and new investment opportunities will be born. From a macro point of view, per capita consumption and GDP are on the rise, the unit price of consumption is getting higher, and opportunities still exist.

Another famous investor, GSR Ventures managing partner Zhu Xiaohu, also said in an interview with 36Kr Holdings that they have invested in more than 20 projects this year, compared with only 10 last year, because "there is less noise in the market this year." the valuation of the project will be much more reasonable than last year.

Capital investment and financing is in the doldrums in the cold winter, but it also means the reduction of impetuosity, and the focus of investors and enterprises returns to value. Those enterprises that did not establish a reasonable business model and expanded blindly by financing blood transfusion were blown down, their stories are no longer attractive, while those that stand the test bloom their value in the cold wind and continue to attract the attention of capital.