VC变成了高利贷

Core Viewpoint - The article discusses the significant differences between the venture capital (VC) investment practices in Silicon Valley and China, particularly focusing on the prevalence of "bet-on agreements" or "valuation adjustment mechanisms" (VAM) in China, which are often seen as a form of gambling rather than a neutral financial term [4][5][9]. Group 1: Differences in Investment Practices - In Silicon Valley, less than 5% of VC agreements include buyback clauses, while over 90% of VC investments in China contain such clauses, typically with a 3-year term [4][6]. - The term "对赌协议" (bet-on agreement) reflects the nature of the Chinese investment ecosystem, where it is viewed as a high-stakes gamble between entrepreneurs and investors [4][5]. - The lack of buyback agreements in Silicon Valley is attributed to a more balanced risk-sharing mechanism through preferred stock, which provides investors with liquidation preferences and anti-dilution rights [6][9]. Group 2: Exit Strategies and Market Conditions - Silicon Valley investors have multiple exit options, with only 20% of exits being through IPOs, while many are through acquisitions by major tech companies [7][9]. - In contrast, 2024 saw a significant decline in IPOs in China, with the total fundraising amount dropping to 67.353 billion yuan, the lowest in nearly a decade [8][11]. - Approximately 65% of acquisition transactions in China involved companies with no prior public financing records, indicating a disconnect between the VC investment landscape and the acquisition market [7][11]. Group 3: The Rise of Buyback Agreements - In 2024, there were 1,741 buyback events involving 1,687 project companies and 978 investment institutions, marking an 8.5% increase year-on-year [11][15]. - The increasing reliance on buyback agreements is seen as a response to the tightening exit channels, with many funds facing pressure to provide returns to limited partners (LPs) [12][11]. - The trend of buybacks has shifted from being a last resort to becoming a mainstream exit strategy, as other avenues have become less viable [15][19]. Group 4: Market Innovations and Solutions - New solutions are emerging, such as third-party buyouts where investors can transfer shares to third parties at a price that includes principal plus an annual interest rate of 8%-10% [15][17]. - S funds, which are designed to acquire illiquid shares from VC/PE investors, are gaining traction, allowing original investors to recover some capital without resorting to litigation [15][17]. - Local government funds are also stepping in to acquire difficult-to-exit projects, providing a safety net for the investment ecosystem [17][19]. Group 5: Systemic Challenges and Future Outlook - The article highlights systemic issues in the Chinese investment landscape, where the pressure for quick exits leads to a reliance on buyback agreements, creating a cycle of financial strain for entrepreneurs [12][13]. - The potential introduction of personal bankruptcy laws and tax reforms could provide much-needed relief for entrepreneurs facing overwhelming debt due to failed investments [18][19]. - Despite these innovations, the fundamental problems of a congested IPO market and a stagnant acquisition landscape remain unresolved, indicating that the market is still searching for sustainable solutions [19].