The value of raw materials and production costs of the IT industry is very small relative to the value of its products, resulting in the IT industry making very high profits in addition to personnel salaries. The wave of globalization and advances in high-tech have further increased the profit gap between many traditional industries and the IT industry. The formerly popular industries such as the home appliance industry have now become veritable "sunset industries" because these industries have saturated and The maturity of technology has led to a gradual reduction in its profit margin, which in turn triggered the industry's own crisis. Therefore, as an emerging industry today, the IT industry is realizing many myths in modern society.
The IT industry is very scalable, it is a perfect J curve, and capital investment will be immediate.
The incomplete list of China's IT venture capital institutions includes high-tech enterprises in various stages of development in IT services, software industry, semiconductor chips, telecommunications, hardware industry, network industry, Baidu, Dangdang, Ctrip and other portal sites. Well-
known venture
capital firm Sequoia Capital (Sequoia Ventures)
KPCB (Kleiner, Perkins, Caufield & Byers)
NEA (New Enterprise Associates)
Mayfield
There are also domestic venture capital cases:
On May 6, 1998, Shenzhen Kingdee Software, one of the largest domestic financial and business management software manufacturers, announced that it had signed an agreement with the International Digital Group. In the information industry, the International Digital Group is a world-renowned multinational group. Kingdee Software will receive RMB 20,000,000 from Guangdong Pacific Technology Fund Co., Ltd. (a venture capital company established by the International Digital Group in China). Kingdee Software will use the funds to conduct scientific research and expand its business in the international market. In the domestic IT industry, this is the largest venture investment since Stone Lifang, and it is also the first international venture investment in China's financial software industry. (Case comes from Baidu)
With the development of information technology, the electronic information industry has rushed to the climax of the times. In particular
, the development of the Internet and communication technology in the past decade has made the electronic information industry a sign of whether a country or an industry is leading or not.
It is also a hot spot for venture capitalists.
Venture capitalists to invest in the IT industry, can not charge interest (because it is investment rather than borrowing), Yun
done to a certain extent, venture capital must rely on effective mechanisms to withdraw cash investment.
Exit venture capital in two ways, first is the operation of listed investment companies, which is the best
choice; the second approach, the risk is passed on to another venture capitalist, only in this way passed on the wind
risk , And will not get a good return on investment.
For IT companies, introducing venture capital has three obvious advantages.
First, the necessary funds can be obtained.
Second, there is no obligation to repay the funds that have been incorporated, and the stability of funds can be maintained.
Third, to withdraw from the venture capital, the best way is to help the enterprise market, business investment risk will be
other investments and help consultative non-monetary form.
The electronic information industry is favored by venture capitalists and is determined by its high penetration and high popularity characteristics. Which
is a typical representative of the communications industry. Compared to other high-tech, the more it seemed communication technology, applications face
a wider, more easily accepted by the people. Look at the speed at which our mobile phones are updated. References such as "fifth media" and "thumb economy" reflect the major impact of the communications industry on people's lives, and it has increasingly become a part of our lives. Therefore, industries with universal influence such as communications are more likely to become bright spots for venture capitalists. Last year, KaiAi invested 1.2 billion yuan to build an international high-tech industrial park in Liangshan, Shandong. In fact, it was also a venture investment in communication technology and high-tech.