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Zheng Jianwei of Hony Capital: Scientists are advised to be rational in their approach to corporate valuation

2024-08-10

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Zheng Jianwei. File photo

At the closed-door seminar on "Cultivating 'New Quality Productivity': Scientists and Investors on the Road to Innovation", "Scientists are making rapid progress now, and we can choose some very good entrepreneurial projects." Zheng Jianwei, partner of Hony Capital, believes that now is a good time to invest in scientists' entrepreneurship.

"Some scientists have been spoiled by the impetuousness of the investment community, and they should be guided to have the right financing philosophy." Zheng Jianwei gave an example, saying that the overheated capital once raised the valuation expectations of scientists, leaving some projects with "no way out" in subsequent financing. Especially in the current capital environment, "scientists should be very cautious in using the financing funds, otherwise it may be difficult to find investors."

According to the official website, Hony Capital manages a total of over RMB 120 billion in funds, with investors including pension funds, sovereign wealth funds, university endowment funds, insurance companies, family foundations and individual investors. In the private equity investment sector, the team manages 14 funds with a total fund size of over RMB 68 billion, and has invested in hundreds of Chinese and foreign companies.

In the view of Zheng Jianwei and his team, vigorously developing science and technology is an important foundation for social development. At present, science and technology entrepreneurship is constrained to a certain extent by insufficient capital supply. In his speech, he proposed to promote the establishment of a new innovation system, for example, to provide multi-dimensional financial support for start-ups, including R&D funds, venture capital and corporate sponsorship.