Core Viewpoint - The current venture capital funds should focus on five major processes that are expected to yield good investment returns, including addressing supply chain issues, digital transformation, carbon neutrality, health advancements, and consumption upgrades [3][8]. Group 1: Five Major Processes for Investment - The first process is the "short board" process, which aims to solve critical supply chain issues and ensure safety and self-control [3][8]. - The second process is the digital transformation process, emphasizing the need to use digital technology to reform traditional industries and improve various aspects of life and work [3][9]. - The third process is the carbon neutrality process, which has evolved from being driven by financial products to policy-driven, and now is entering a demand-driven phase [3][10]. - The fourth process is the "big health" process, shifting from symptomatic treatment to root cause resolution, with predictions that China will lead in biopharmaceuticals in the next seven to eight years [3][11]. - The fifth process is the consumption upgrade process, which is crucial for economic growth and should receive more attention and support from the capital market [3][11]. Group 2: Global Perspectives on Venture Capital - The development trends in the venture capital industry are influenced by changes in demand and supply, requiring innovation and reform in products and services [4][5]. - Countries are adopting different development paths, with some focusing on innovation-driven investment strategies that support small and medium enterprises and disruptive innovation, while others rely on traditional investment strategies [5][6]. - China has maintained an innovation-driven investment strategy, which has significantly contributed to its technological advancements and economic growth [6][7]. Group 3: Investment Impact and Achievements - Since the emergence of venture capital in 1999, China's GDP has increased over 13 times, with venture capital contributing more than 43% to this growth [7]. - Venture capital has played a significant role in establishing a complete industrial chain in China, with over 40% of major industrial products leading globally [7]. - The venture capital sector has supported the development of leading companies in various industries, including semiconductors and renewable energy [7]. Group 4: Future Recommendations for Venture Capital - The industry should focus on "early, small, and future" investments, promoting patient capital as a fundamental requirement for a healthy venture capital ecosystem [12]. - The capital source structure should be optimized to include government capital, various financial capitals, and family wealth, creating a balanced investment environment [13]. - Emphasis should be placed on post-investment management and support to help companies grow, rather than solely pursuing high-profile successes [14]. - The development of S funds and follow-up funds is essential to avoid potential market disruptions and support the real economy [15].

Core Insights - The 25th China Private Equity Annual Conference highlighted five key processes for venture capital funds to focus on, which are expected to yield good investment returns [1][3] Group 1: Five Key Processes - The first process is the "short board" process, aimed at addressing critical supply chain issues to ensure safety and self-control [1][3] - The second process is the digital transformation process, which involves using digital technology to reform traditional industries and alter work and life scenarios [1][3] - The third process is the carbon neutrality process, emphasizing the importance of transitioning energy structures [1][3] - The fourth process is the "big health" process, where significant changes in China's biomedicine sector, particularly in gene and cell innovation, are attracting investment [1][3] - The fifth process is the consumption upgrade process, which supports economic growth and enhances the quality of life, with consumption enterprises continuously evolving and deserving capital market support [1][3] Group 2: Market Outlook and Recommendations - The first recommendation is to "invest early, invest small, invest in the future," promoting the development of "patient capital" [2][4] - The second recommendation suggests optimizing the sources of capital for private equity investments [2][4] - The third recommendation indicates that private equity finance and capital attraction are becoming important means for local governments to transition from land finance, necessitating changes in commercial strategies and product designs of venture capital institutions [2][4] - The fourth recommendation emphasizes the need for venture capital institutions to focus more on post-investment management and services, adhering to a "30% investment, 70% management" principle [2][4] - The fifth recommendation calls for the development of S funds and follow-up funds from central to local levels to create a sustainable innovation investment ecosystem [2][4] - The sixth recommendation advocates for a diverse approach, where venture capital funds and capital markets support balanced development across various industries [2][4] - The seventh recommendation stresses the importance of maintaining a healthy secondary market, supporting IPOs of innovative enterprises and participating in mergers and acquisitions [2][4]