《Is Outsized Return Still Possible in China - Kaifu Lee》.pdf

Is Outsized Return Still Possible in China? The Innovation Works Approach to Early-Stage Investing Kai-Fu Lee Chairman CEO July 2012 EMAIL: kfl@ Innovation Works Confidential 1 China’s GDP to Outstrip USA by 2018 Source: PwC Projections based on World Bank Data, GDP per capita in 2009 dollars, adjusted for purchasing power parity (PPP) Innovation Works Confidential The Private Equity Model is Being Challenged $40b in new funds raised Almost exclusive focus on late-stage Real estate Multi-stage – 4% – 1% Profitable - Venture – Early - 6% 3% 10% Growth - 48% Expansion - 43% PE – 85% Source: ChinaVenture, 2010 Venture Capital and Private Equity Market Statistics Pros Cons • Past IRR up to 100% • 8,000 PE funds! • 2010-2011 were record IPO years • No mor