As a mage, I just want to pursue the truth

Chapter 23 IDG Capital and CMB International

If you want to survive in the investment field, you need a keen sense of smell, quick movements, and accurate judgment. Good investment projects can be cut off the day before signing.

Not to mention a project with high certainty and bright prospects like Kechuang Biology. After reading the first phase clinical report of endorphin, investors have only one thought in mind: I want to grab this project.

Cheng Gang said helplessly: "You should know that you have done research on Kechuang Biology. Zheng Dong is a person who is dedicated to research. After the first phase clinical trial report came out, Mr. Lei came to Gusu for inspection and proposed to have dinner with Zheng Dong."

"They all ate in our company canteen. After eating, they chatted for less than 10 minutes and it was over. Mr. Zheng continued to work in the laboratory."

"Director Zheng spends more than [-] hours in the laboratory every day, and has no time to go out to eat at all."

"The boss is more diligent than the employees below. I feel ashamed. The first thing Mr. Lei said to me after dinner with Mr. Zheng was: If such a person is not successful, who can succeed?"

"The second sentence is: The scariest thing is that people who are more talented than you work harder than you."

Stephanie said with emotion: "You have to trust Goldman Sachs' research capabilities, which are written in our research report. We want to invest in Sci-Tech Biotech not only for endorphins."

"More importantly, I want to vote for Zheng Li, a top scientific research genius combined with unparalleled efforts, and he is still so young, Zheng Li can at least support the development of Kechuang Bio for the next 30 years."

"I am very willing to come to your company to have a meal and chat with Mr. Zheng."

Cheng Gang replied: "I'm sorry, the first one to call was Young from IDG, Zheng Dong really doesn't want to see anyone."

Young Guo of IDG is an undergraduate in the Department of Applied Chemistry of Shenhai Jiaotong University and a doctorate in polymer chemical engineering from Massachusetts State University. He is the first outside investor to realize the value of Zheng Li.

At the beginning of the establishment of Kechuang Bio, Young expressed his hope to participate in the first round of venture capital, but at that time, Zheng Li and Lei Jun had no intention to increase capital and share.

"However, we will hold a sharing session later, when we have new research results to be announced, and we will talk about the details of the second round of investment."

"The sharing session should be in these two days."

On a sunny afternoon in Gusu in June, many investors gathered in the open conference room of Kechuangbio, and Kechuangbio only sent invitation letters to the top domestic investment institutions.

Before the sharing session started, the investors had already exchanged words.

"Hong Bo, when will CMB International invest in biopharmaceutical companies?"

"Sci-tech biotech and CMB International's investment philosophy may not match, right?" Young from IDG Capital and Wang Hongbo from CMB International said while chatting.

Among the venture capital institutions active in China, apart from foreign capital such as IDG Capital, Sequoia, Goldman Sachs, and Morgan, there are also venture capital departments established by domestic first-tier banks in China, Agriculture, Industry, Construction, Communications, and Recruitment.

These banks generally set up their own venture capital departments around 2011.

Wang Hongbo chuckled and said: "That's not what you said. China Merchants Bank once led the investment in Kangtai Biotech and helped Kangtai Biotech to be listed on the GEM. We have always been committed to investing in outstanding domestic innovative companies and growing together with excellent companies."

Young wondered who didn't know who, what are you pretending here: "The only biomedical company CMB International has invested in over the years is Kangtai Biologics, right?"

"The last time I invested in Kangtai Biotech was in 2015, and Kangtai Biotech was listed on the Growth Enterprise Market in 2017. I am afraid that you and I know the specific purpose of CMB International's investment in Kangtai Biotech."

"Kechuang Bio will not go public so soon, can CMB International be able to stand the loneliness?"

Wang Hongbo smiled and said: "You don't need to worry about this. We plan to get involved in venture capital in the biopharmaceutical industry from this year onwards. We are very optimistic about companies related to the localization of biomedicine."

Cold knowledge: CMB International invested in Kangtai Biology in 2015, and has never invested in the biomedical industry since then. However, in 2020 and 2021, it invested in five companies in the biomedical industry in one go.

The reason is very simple. After the 18-year trade war, the country put forward the requirement of domestically produced replacement of foreign equipment in the background of financial institutions, which is the so-called "de-IOE", and proposed that domestic equipment should account for at least 70.00% of the background equipment of financial institutions.

According to the same logic, the biopharmaceutical industry also wants to realize the top-level will to replace imports with domestic production, so pharmaceutical stocks and pharmaceutical-related venture capital have begun to rise.

Young: "CMB Capital can only help Sci-Tech Biotech in terms of capital operation, but IDG Capital can help Sci-Tech Biotech in an all-round way. Our investment experience in the biomedical industry is not comparable to that of CMB International."

Before 2020, IDG Capital's investment experience in the biomedical industry is indeed much richer than that of CMB International. They have invested in companies in the biomedical industry since 1996.

Among them, the 2007 A-round venture capital investment of Jiuan Medical, the most popular demon stock, was led by IDG Capital.

In addition, don't think that the investment industry is so high and powerful. When a really good project appears, they will use any dirty means as long as they are useful.

Wang Hongbo: "If you only look at the investment experience in the industry, then I don't think Kechuangbio needs to send invitation letters to the bank's venture capital."

"Isn't it enough to send it directly to Goldman Sachs, Morgan, and IDG?"

"Old Guo, take it easy, your competitor is not me, your competitor is Goldman Sachs, Morgan and others, and my competitor is BOCOM International, CCB International, China Venture Capital, CICC and other companies."

"A high-quality enterprise like Kechuang Bio will definitely not introduce all foreign capital."

Young Guo replied: "I'm just curious. Logically speaking, CMB International would not invest in companies of this nature."

"What you said makes sense, but according to my information, the final decision is in the hands of Chairman Zheng. He has never met any representative of an investment institution."

"Now everyone is on the same starting line."

"When I saw Director Zheng's resume, I felt that there are really geniuses in this world. In the second round of venture capital investment, we have at least doubled the valuation of Kechuang Biotech to 50 billion RMB."

"Zheng Dongcai's worth has exceeded 40 billion RMB, and I was still doing test tubes in Shenhai."

Wang Hongbo: "People are different. Our understanding of Zheng Li is that he is a top scientific research talent."

"But I think he is not only gifted in scientific research ability, but also in decisiveness and judgment. After publishing nature, he directly chose to drop out of school to start a business. He only met with Lei Jun once and got 5000 million venture capital. "

"After getting the venture capital, every step of the way is just right."

"I have to feel that the world will eventually belong to young people."

(End of this chapter)