Liu haofei, founder partner of Shengjing Jiacheng: Investment methodology behind 118 listed companies of Shengjing Jiacheng

On September 14 and 15, under the guidance of Nanjing Municipal Bureau of Commerce; Sponsored by Nanjing Investment Promotion Center and shengjingjia chengmu fund; "2020 China LP Fund Investment Summit, Shengjing Jiacheng 2020 investment annual meeting", CO sponsored by southeast fund and Shengjing Kefu, was successfully held in Nanjing Zijin villa.

(Liu haofei, founding partner of Shengjing Jiacheng)

　At the meeting, Liu haofei, the founding partner of Shengjing Jiacheng, made a wonderful speech on the theme of "Shengjing investment methodology: early lead investment, strong empowerment + select the best from the master fund".
The following is a transcript of the speech:
For LP, the core concern is earnings. Income is a result, but we often think about a problem. The result of income is composed of many factors. Which factors are accidental and which are inevitable? The key to investment is to find the factors that can ensure success, make them work continuously, and avoid the factors that make people step on the pit.
The return of investment is not always positively correlated with the quality of investment decisions
The return on investment is not always positively correlated with the quality of investment decisions. It may be like going to a casino, where you don't know anything and just win a lot of money when you make a bet. It's also a reason to buy lottery tickets. Which dimension should be used to distinguish necessity from contingency? Income, the most important dimension, must have a time axis to test.

In the long run, if the return of investment is to be good, the quality of investment decision must be high. But in the short run, the correlation may be very low. There is a saying that "money earned by luck can be lost back by ability", which is what it says.
High yield law: high yield = (safety) × (Sustainability) ÷ Low cost. This is our understanding and precipitation of investment. It's different from the expression of some investors, but it's actually the same thing.
Since the essence of investment behavior is the realization of cognition, we should have enough in-depth cognition that can link many problems together to form a basis for our decision-making.
A successful investment is always a friend of the trend
A successful investment is always a friend of the trend. At present, the general trend of the times is in the field of science and technology, and the development of science and technology is the biggest driving force of social change. Based on this cognition, we develop our investment behavior and research behavior to achieve sustainable and repeatable success.
Therefore, there are two necessary conditions to judge whether the investment method is of high quality: one is long enough time, and the other is enough samples. Only in this way can you prove the validity of your investment methodology.

With an investment scale of over 12 billion yuan, Shengjing Jiacheng has cooperated with nearly 70 head agencies, with 100 direct investment projects, belonging to the sniper type and powerful enabling projects. 118 projects are listed today.

The increasing number of listed projects shows the sustainability of our effective investment methods. The value-added of Shengjing Jiacheng's many direct investment projects is not only because we have the vision to select good entrepreneurs, but also because we study the business model together with entrepreneurs to help empowerment and construction, so as to obtain a better growth multiple.

"Early lead investment, strong empowerment" + "select the best from the best of the master fund"
First, in the early days, leading investment was powerful. This is an investment strategy that was applied before Shengjing Jiacheng became the master fund. It has been 10 years since this strategy was applied.
Second, after becoming the master fund, the master fund will choose the best from the best projects and make joint investment. Due to the strong direct investment ability of Shengjing team, many high return projects have been selected.

Shengjing Jiacheng's leading investment and powerful empowerment actually stems from the accumulation and cognition of the enterprise's business methods. The training and consulting business of brother company Shengjing wanglian has a long history. The training and consulting method comes from the original methodology of the team, namely original research. This is a very difficult way to start. However, today's successful companies and companies recognized by the market, even if they have strong external competitive pressure, still insist on doing things with high threshold, only in this way can they have a chance to achieve greater success.
The precipitation of the team's ability and methodology in enterprise management is the basic skill of Shengjing Jiacheng in leading investment and powerful empowerment. This basic skill has been fully reflected in the real "capital battlefield" and has formed the investment strategy of Shengjing's early powerful empowerment.

　　During the operation of the master fund, Shengjing also found that there is a model that is worth studying especially - Xiaomi, a millet has made many small rice ecological chain start-up companies.
Xiaomi eco chain company has several characteristics. First, all entrepreneurs are old guns. They have started their own businesses, some of them may be close to success, some have already been successful, but they want to be better and bigger.
Second, help start-ups to carry out in-depth empowerment, including upstream supply chain and downstream sales channel empowerment.
Third, the consensus on products and models formed with the start-up companies in the early days. The model reached agreement, millet to ensure the upstream supply chain and downstream sales of ecological chain.
Fourth, Xiaomi, for example, Shunwei capital only takes small shares when investing, and does not hold shares, so that the team has room for future growth.
Combined with these four points, we can see that the success rate of all projects in the ecological chain of millet is very high and the failure rate is very low.
The grand scene thus gets an inspiration: "an enterprise with strong empowerment ability, combined with the old gun of entrepreneurship in the early stage, constructs business model together, and goes to start a joint venture together. It can enter the project earlier, which can reduce both investment cost and risk of entrepreneurship - this is a good model."
When we have studied the ecological chain of millet, we found that the scenery can be also. Grand View ushered in the joining of master Yan yanyanchun in 2017. After he brought the concept of industrial Internet and industrial router into it, Shengjing began to do value mining from the perspective of industrial Internet. In 2018 and 2019, we tried constantly. Later, I entered the field of live broadcast. We found that: after deconstruction with the thinking of industrial interconnection, live broadcast can form an entrance to the aggregation of industrial Internet traffic and form a grasp.
Today, the investment ideas we formed are not overnight, but accumulated in the process of investment enterprises' operation for more than ten years. Moreover, we have also paid close attention to the market changes and learned a lot of new things. From the perspective of being a master fund and doing LP, we have seen the wisdom of each GP. Combined with the strengths of the scene, we are integrated to form today's play, which has proved very effective.
"Early leading investment and strengthening empowerment" strategy will focus on the industry internet live broadcast ecology
For us, the only challenge now is time, need to link more external brain, more entrepreneurs, together in the industrial internet live broadcast ecology to get the first opportunity layout.

Shengjing Jiacheng uses the global innovation investment platform to capitalize, so that you LP can benefit from capital.
Shengjing Netcom is a global innovation service platform with its own business research methodology and cognition. From small and medium-sized enterprises to large enterprises, Shengjing has a proven methodology system to make these enterprises more successful.
Looking back on the success of history, what's more important is what we should do in the future? The answer is very clear, because we are doing research and iteration every day, and naturally see where the future path is. The next step is to focus on the live broadcast ecology of industrial Internet in the field of early leading investment and powerful empowerment.
If we use the thinking of industrial Internet to deconstruct the ecology of live broadcasting, we think that the biggest opportunity lies in enterprise live broadcasting.
What is enterprise live broadcasting? It is the combination of private live broadcasting and public live broadcasting, using a unified top-level design for user management, and using different ways for traffic aggregation and sales transformation.
Shengjing deconstructs the live broadcast ecology with the thinking of industrial Internet, cuts into the live broadcast e-commerce, and serves the demand of enterprise live broadcast. This is a 10 trillion market. The live e-commerce in 2020, much like the e-commerce in 2008, has entered the turning point of the outbreak.