On December 4th, Nova Club held a global blockchain investment agency summit in Guangzhou. This summit attracted participants from Consensus Lab, Chain Capital, Eight-dimensional Capital, Ke Yin Capital, Benrui Capital, Spark Capital, Hundreds of domestic and foreign investors in capital and other institutions.
There are both project parties, token funds, and traditional equity investment institutions. They have wonderfully shared around blockchain investment.
After the 1025 New Deal, what is the blockchain track that investors are most concerned about? In 2020, will this be the best time for institutional capital to "snuggle" blockchain unicorns? After the cold winter, where are the investment opportunities for blockchain? Due to space limitations, we have compiled the representative views of several guests. Based on this, you may have a glimpse into the opportunities and pitfalls of Chinese blockchain investment.
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▲ Ren Ye, Partner of Consensus Lab
Ren Ye, Partner of the Consensus Lab: Blockchain vents are still there, but the scale has fallen under the influence of the general environment
We made statistics on different dimensions of more than 100 investment institutions, and we found several situations.
When it was established, most of the investment institutions were in 2017, second in 2018, third in 2016, and very few in 2019.
On the scale of asset management, US $ 5-1.5 billion accounted for the largest proportion, followed by US $ 1-1.5 billion.
In terms of investment scale, 27% have been invested in 0-10 projects since establishment, 14% have been invested in 10-20 projects, and 13% have been invested in 20-30 projects. In other words, the investment projects of most investment institutions are in the dozens or 20s. This shows that, compared with traditional investment institutions, the frequency of block chain investment institutions is not particularly high.
From 2019 alone, the number of investments has fallen considerably, with 56% of institutional investment projects only in 1-5.
It must be noted that from the perspective of the investment scale of global investment institutions, 2018 was 4.2 billion U.S. dollars, and it fell to 800 million U.S. dollars in 2019, which indicates that the world is experiencing economic decline. influences.
It is optimistic that in the global investment in 2018, the scale of investment involving blockchain technology accounted for 10% -20%, which will rise to 20% in 2019, which also shows that the vent of the blockchain still exists However, due to the impact of the overall economy, the scale has declined.
We put our perspective on the distribution of investment. The underlying technology accounts for $ 265 million, which mainly includes protocols and public chains. This shows that the underlying technology is still relatively sought after. The industry application is $ 184 million, ranking second, which is very surprising, indicating that the landing of the blockchain may be in the coming tomorrow. The cryptocurrency category is $ 138 million.
In summary, we find three characteristics.
First, projects with high-quality assets, solid technology, excellent teams, and good performance are becoming the goals of capital chasing. Second, investment has always had problems with liquidity and returns. With the decline in investment quotas and numbers in 2019, the game between investment institutions and projects between private placement and hedging has begun to appear in investment strategies.
Third, blockchain investment has gone from equity investment to token investment, and then returned to the focus on investment equity.
Li Xiangmin, founding partner of Chain Capital: Nova four dimensions-product, team, market, financing
In the past three years, from the perspective of traditional investment IPOs, there were more than 1,600 in 2017 and 1,350 in 2018, and only more than 1,200 remain this year. Blockchain investment institutions rose from more than 700 in 2017 to more than 2,500 in 2018, and this year fell to more than 200, avalanche-like decline.
why? Three reasons:
First, technology is very immature. It takes a long time to research and develop issues such as privacy, cross-chain, and performance. Second, commercial landing is poor. There is no large-scale commercial implementation. Third, the valuation model is missing. Under this new business model, traditional valuation methods have failed.
Nova, we will launch an institution-led blockchain project rating standard, divided into four modules: product, team, market, and financing. These are the four dimensions we look at in the project.
First, the product. We will evaluate a project from multiple dimensions such as product positioning, roadmap, and project phases. We have three questions for the soul: whether the product solves the problem that was not solved originally, whether decentralized technology can increase revenue or reduce costs, and if there is no blockchain, is there a better solution? We are most afraid of blockchain for the sake of blockchain.
Second, the team. We will look at the background, technical strength, operational capabilities, expert consultants, etc. Taking the background of the team as an example, we will look at the authenticity of the resume, whether the functional staff is complete and reasonable, and whether the execution is in place.
Third, the market, we will look at the project track, traffic heat, community heat, media publicity, conferences and exhibitions, third-party ratings, and so on. The important feature of the blockchain project is the consensus of the market and the community, which is indispensable.
Fourth, financing. We will look at the financing history, proportion, type, project valuation, fund supervision, etc. For example, if a project's financing ratio is too high, investors may become major shareholders, which often leads to the collapse of the team. Without effective supervision and management, projects can also fail.
Chauyusen, Partner of Pythagoras Investment: Crypto Market Lacks Evaluation Method
The biggest difference between the crypto market and the traditional market is the rating system. In the traditional market, if you want to obtain equity, there will be a method to evaluate the rating, but the evaluation of the cryptocurrency is more difficult.
In traditional financial markets, fluctuations in prices can be speculated behind the reasons, government policies, or the company's own news. But in the crypto market, no matter what kind of news is happening, it is difficult to speculate on its ultimate impact on the market.
In the traditional market, it is a terrible thing for traders to break the law. In the crypto market, internal traders can whitewash the peace (brush data), which is very dangerous to the outside world. From a legislative perspective, there will be more comprehensive regulations in the entire trading market, but it has not yet landed on a large scale, and the market has not yet matured.
Zhu Weiyu, Partner of NGC Ventures: Asset tokenization may ultimately depend on traditional financial practitioners
Once a traditional asset is tokenized, it is also a digital asset, but this digital asset is completely different from Bitcoin and Ethereum.
It is a further upgrade of the original asset digitization. It has been a great progress from paper securities to electronic securities. After tokenized assets, liquidity may be further improved, which is very helpful for asset value discovery.
But this is most likely not something that people in the traditional currency circle or chain circle can do. It seems that people who study papermaking will not understand the value of stocks, and people who study electronic trading systems will not understand the value of digital stocks, which are essentially two different things. Even if digital assets are based on the blockchain, it does not mean that blockchain practitioners can understand these assets well. They may understand this carrier and technology. For real assets, traditional financial institutions will understand more.
It is also interesting to combine blockchain with traditional industries. Some people say that it is no different from traditional IT service companies. It is done on a case-by-case basis. Its scale efficiency and expansion ability are different from those of Internet companies. I think a lot of times we may be too eager to pursue growth, but value discovery does not explode in an instant, it is made of bricks. Many people think that one case at a time is a project for an enterprise, and IT services are very low. But this may be our most valuable place in the future, and it is a trend that is very compatible with the transformation of the Internet investment circle to the industrial Internet.
Huashan Capital Zhao Kai: Landing is the core of blockchain technology
The blockchain is a distributed multi-active database. As a new technology, it still needs to be applied and implemented, and there must be feedback on the report, so that it is possible for the IPO or the M & A investment institution to exit.
We do equity investment, and a new technology alone cannot make us completely obsessed with the trend. After the new policy, our attitude changed from cautious to cautiously optimistic. I believe that the country will introduce a series of guiding standards. Only under these frameworks can we make equity investments.
We are optimistic about the application of blockchain in the financial field. "Poor schemes, rich conscience." Whoever can grasp the big B will have higher income and profits.
Hang Seng Electronics Jia Tianyu: New Deal will improve the image space of blockchain projects
After the new policy arrives, our criteria for project selection will not change, but there will be changes in project expectations and imagination space, which will have a positive effect on the project valuation system and investment decision-making process.
The bigger change is on the client side of the blockchain application, which corrects the name of the blockchain. So many more people start to learn blockchain technology, it is a process of potential customer education.
Baidu Ventures Zhang Yanxiao: Blockchain is very promising, but it is also immature
We have gone through the complete cycle of AI completely. As a new technology, everyone was excited about it at the beginning. They had high hopes for it and invested in some projects crazy. Later, people found that technology alone is not enough. It needs to find a landing scene in the industry. It needs a market. The value of AI is not in technology, but it can bring efficiency changes.
Blockchain is the same. It is very promising, but it also faces huge immaturity. We have also invested in some low-level technology projects. We hope that after the foundation of the technology is consolidated, there will be great ecological changes.
Today, when more governments and enterprises see the possibility of the actual implementation of the blockchain, how to serve them has become a test of the commercial operation and engineering capabilities of blockchain projects.
Today, you want to be a disruptor of the original rules through the blockchain. You are fighting the restraint system of the original rules. Can you break that restraint?
We are looking for such a team, it can see the original binding point and break it through the blockchain. At the same time, this team has good technical and commercial operation capabilities.