From October 22 to 24, 2020 Chongqing International Venture Conference was grandly held in Chongqing. The three-day conference attracted nearly 100 global capital leaders, 50 investment and financing institutions, 500 companies, and nearly tens of millions of online and offline professional audiences.
The goal of this year’s Conference is to interpret global venture capital trends, find investment opportunities, and provide new ideas and directions for local development at the capital level. In other words, it is to attract wisdom. Focusing on this goal, the conference set up a “1+5” forum to fully stimulate the “wisdom” of the guests. The conference took the theme of "Intelligence• Innovation• Entrepreneurship: Explore Western (Chongqing) Science City". It was hosted by Western (Chongqing) Science City, co-organized by Chongqing Science and Technology Bureau, Chongqing Local Financial Supervision and Administration Bureau, and the People's Government of Shapingba District, Chongqing, and implemented by IDG World Expo China.
In his speech at the forum on Enterprise Growth Empowered by PE/M&A, Mr. Dave Chen, founder, CEO, and managing partner of Oceanpine Capital, noted that most clients of hard and core technology are in traditional industries, representing markets worth of over RMB 1 billion. To satisfy the needs of each of these markets, one must truly understand the industry and the sector. Hard and core technology start-ups must be connected to resources and technology of the industry. Despite outstanding products and technology, many young entrepreneurs fail to match with those giant clients and companies due to a lack of experience in the industry; as a result, they go on a hard road and are even harder to be successful. Therefore, it is important to understand industries and match resources.
During the roundtable dialogue, the guests believed that equity investment is gradually transforming from transactional and opportunistic investment to industry-based value investment. The entire PE investment stage is gradually extending from mid-to-late and mature investment to early and mid-term growth companies. The gradual upgrade from discrete post-investment services to the investment empowerment of the ecosystem, and the gradual attempt of investment methods from equity investment to mergers and acquisitions. At the same time, the guests also expressed their optimism about the investment and development opportunities in the western part of my country, the dual-city economic circle of Chengdu and Chongqing, and Chongqing. They believe that there are many high-quality companies in the west that can be tapped. Relatively speaking, the valuations of these companies are relatively reasonable, and their competition in this area is not fierce. Therefore, as far as Chongqing is concerned, venture capital will have a good development trend, and it is very worthwhile for investment institutions to deploy.
Source: Oceanpine Capital
