On September 21, the 2022 China Fund Partners Summit was held in Hangzhou. At the summit, 36 kryptons released a series of 2022 investment institutions, committed to finding and finding those investment institutions and backers worthy of attention in the market.

This is the fourth consecutive LP/GP survey held by 36 Krypton, in which 1500+VCs, PEs, master funds and industrial funds in the market were invited to participate. By sending targeted survey questionnaires, the detailed data of participants in four dimensions, including fund-raising, investment, management and exit, were widely collected, and based on the questionnaire content, a reverse interview/telephone survey was conducted to understand the market overview.

With its excellent investment performance and fund-raising achievements, Harvest Capital has won many honors, including:

Top 50 of "2022 China's Most LP Recognized Private Equity Investment Institution"

Top 50 of "2022 China's Most Recognized Local Investment Institution by LP"

Thanks for recognition, Harvest will continue to stick to consumer investment with practical actions, accompany entrepreneurs and entrepreneurs, and never forget their original intentions and forge ahead.

The following is the keynote speech of David Xu, a partner of  Harvest Capital, at the 2022 China Fund Partners Summit:

Hello, I'm David Xu, partner of  Harvest Capital. Harvest Capital is an investment institution that was established in 2007 to focus on the consumption field vertically. We have been investing and consuming since our establishment 16 years ago, without going beyond the big track and boundary.

At present, the management scale is more than 26 billion yuan, with a total of 30 to 40 projects invested, averaging 2-3 projects per year. We have invested in many of the first shares in the consumer sector. The first batch of roasted nuts in 2009 was Qiaqia melon seeds; The first batch of Barbie food of steamed buns; The first Dongpeng beverage in China; The first soy sauce in China is soy sauce; The first share of the snack chain comes to Yifen and so on. Harvest Capital is characterized by focusing on consumption, limited investment and large investment scale of single project. In addition, we attach great importance to the post investment aspect. If we look at the distribution of time and team resources, about 80% of our time is spent on the post investment aspect.

From our perspective, we have different perceptions of the development of Chinese local institutions. Some companies invested by Harvest Capital are mature companies with a history of 10-20 years. In our eyes, such companies are still young in the consumer track. The GP industry in China has only been developing for about 20 years. In fact, it is also very young. GP institutions often enter their youth stage and also face many difficulties in growth. Today, we have the opportunity to discuss development opportunities because our fund has some principles and characteristics:

1. Focus. In the past 16 years, we have only looked at consumption, and we know where our capacity boundary is. A prepositional recognition is that the consumption track is very large, which is enough for us to work for a lifetime. Focus will bring great competitiveness, because we only look at food, drink, play, food, shelter and transportation. It took 16 years to make our algorithm, computing power and industry closely tied together.

2. Adhere to the head strategy from the first day of establishment. The first project we invested in in 2009 was Qiaqia Food, which was already the industry leader at that time. This strategy is also very difficult. As I often tell my colleagues, "We can't just see ducks swimming gracefully on the water. In fact, it's very hard to paddle under their feet.". We put our money into these companies with very good cash flow and very good profits. The companies in the head of the industry do not rely on relationships, but on ability. By making these chairmen realize that  Harvest Capital can provide additional help to these leading enterprises in the industry. Empowering enterprises is our second feature.

3. The common feature of every GP present today is to resist temptation. Over the past decade, there have been various dividends, whether from the Internet or hard technology. Consumption is a very interesting track. In the last two years, countless GPs were suddenly pouring in for consumption, which is irrational. In such a hot and cold environment, it is important to adhere to principles and resist the temptation of other industries.

4. Today's theme is to stay in the business. In the past 16 years, we have always put ourselves in the business of the invested enterprise, and defined ourselves as the business partner of the invested enterprise, to create together with the enterprise. Although the investment is in the late stage of PE, we still use the mentality of co creation to help enterprises grow and increase their value. These four points are the reasons why we can get to today.

From the perspective of the cold and warm macro environment, all of you who may be here in 2022 will not feel good, but more pressure. However, everything has two sides. Happiness and misfortune depend on each other. Similarly, our consumption and investment industry may also be under pressure, implying good news.

Our research on the world's top consumer brands has concluded that the real top brands are basically growing under pressure. We went to see Nike in America, Uniqlo in Japan and Dyson in Britain. Uniqlo was founded in 1984, and Japan entered the lost 30 years later. The founders can hardly get VC's money. Even during the oil crisis, they borrowed money from the bank for the company's operation at an interest rate of 10% - 20%.

From the perspective of fund-raising, the environment is very cold now. However, from the perspective of investment, it is a good time for the founders to calm down and not blindly pursue overvaluation. Because it is impossible to raise a lot of money on account, or to invest blindly after getting the money, which will not form a substantial and effective accumulation. From the perspective of investment, the next few years will be a good window period. I also believe that in the next 5 to 10 years in China, a number of enterprises can become the world's leading consumer brands.

From the perspective of fund-raising, there are certainly challenges, but there are also opportunities. We have seen some market-oriented, long-term understanding of the consumer track, very solid master funds, insurance, home offices, and are still looking at the track seriously, which also poses more challenges to GP. Just like the project we invested in, we need to practice internal skills in a cold environment, and we need to build personalized and differentiated capabilities. This is not a bad thing.