500 million RMB fund is about to start the Japanese SBI Group China layout acceleration (VC294)

On February 15th, Japan ’s SBI Group (SBI Holdings, Inc., formerly “Softbank Investment”) announced that its overseas operating profits in fiscal 2012 will account for half of all profits. Although it is still 12 months before the target is fulfilled, it is in China. The domestic business development has quietly accelerated.

After acquiring the 7.65% stake in Tianan Insurance in June 2010, SBI Group is currently preparing to assist Tianan Insurance to expand its online auto insurance marketing business. The 500 million yuan fund established with Fudan University has entered the preparatory stage.

"In the long run, SBI Group plans to contribute 1/2 of its profits to overseas businesses." Li Peilun, chief representative of SBI Group's Shanghai representative office, said, "At present, our investment in China has reached more than US $ 200 million, and this number will be large in the next two years. Increase in magnitude. "

Improved Tianan Insurance marketing model

Since preparing for the Shanghai representative office, Chairman Kitao Yoshio has visited Shanghai three times to conduct a series of trials in China to implement the new business strategy of the SBI Group's financial ecosystem.

The so-called financial ecosystem, that is, SBI Group ’s long-established strategy of “five-cornered operation” of financial service business, integrates five cores of “securities”, “banks”, “property insurance”, “life insurance” and “clearing services”. The business promotes the coordinated development of each other, and gradually spreads the experience of the five core business collaborative development accumulated in Japan to other emerging country markets.

In July 2010, SBI Group acquired 166 million shares of Cheonan Insurance from Tokyo Maritime Fire Insurance Co., Ltd., Japan, and was the first to test the "synergy" of the SBI financial ecosystem strategy.

At that time, Tianan Insurance's performance was not "pretty". Its net profit in 2007 was -955 million yuan, excluding investment income of 1.392 billion yuan, and the actual loss of insurance business reached 2.347 billion yuan; net profit in 2008 was 1.589 billion yuan, excluding investment income of 231 million yuan, and the actual loss of insurance business reached 1.82 billion. yuan. As of the end of 2009, Tianan Insurance still lost 397 million yuan.

But SBI Group believes that "the worst days are over." Since 2010, Cheonan Insurance has achieved business improvement. The latest data from the China Insurance Regulatory Commission show that as of December 2010, the accumulated premium income of Cheonan Insurance is about 8 billion yuan, achieving a substantial turnaround.

SBI Group is also very confident in the business cooperation between the two parties after participating in Tianan Insurance. "Tianan Insurance's auto insurance business is mainly concentrated in the dealer distribution business. This business is already very competitive in China, but the online auto insurance marketing business accounts for the proportion of Tianan Insurance's premium income is still very low." Since its participation in Tianan Insurance, SBI Group Has been thinking about exploring the business cooperation model of both sides.

SBI Group ’s self-confidence comes from the Japanese Ins Web site of the SBI Group, a one-stop service that provides different car insurance valuation and application information to 2.8 million car owners in Japan, and has become one of the largest insurance product unified evaluation sites in Japan. According to the SBI Group ’s fiscal year 2010 financial report, thanks to the “help” of the Ins Web website, the annual contract premium income of the property insurance company under the SBI Group in 2010 was 5.1 billion yen, a year-on-year increase of 3.4 times.

"Our communication with Cheonan Insurance's management in online auto insurance marketing is quite good, and it is not excluded that SBI Group will establish a joint venture for an online insurance valuation and marketing company in China in the future." Li Peilun said.

The first private equity fund will be launched soon

In October 2010, SBI Group and Fudan University jointly initiated the establishment of a private equity investment fund, which mainly invested in high-tech enterprises in the fields of information technology, biomedicine, environmental engineering, and new materials to promote the industrialization of scientific and technological achievements of Fudan University.

"At present, the two sides are communicating and negotiating the operation direction, investment strategy and company cooperation mode of this RMB fund." Li Peilun said, "Unsurprisingly, this RMB fund will be officially put into operation in the summer of 2011."

"There are potential investors who are discussing the details of funding with us." Li Peilun said.

As early as May 2005, SBI Group and Singapore ’s Temasek Group launched a US $ 100 million new Tianyu Capital private equity investment fund. Currently, the first-phase fund of Xintianyu Capital has invested in about 10 domestic companies, of which 7 companies have gone public. 1 completed exit.

"But in the long run, SBI Group hopes to establish a localized equity investment management team." Li Peilun said. Since 2008, SBI Group has cooperated with Tsinghua Holdings and Peking University Jade Bird to initiate the establishment of private equity investment funds of USD 34.5 million and USD 100 million. Correspondingly, SBI Group's voice in fund management companies has also steadily increased.

However, the change from a domestic equity investment fund investor to a domestic PE fund manager has made SBI Group taste the troubles of investment culture differences.

It is understood that the biggest difference between the domestic venture investment environment and Japan is that the average single investment of Japanese venture capital institutions is less than one million US dollars, and the investment risk is diversified through joint investment; while the single investment of Chinese equity investment projects is higher , At least all of them are in the millions of dollars; secondly, Japanese venture capital institutions mainly look at the technology content and product advantages and disadvantages of the invested companies, while the domestic equity investment field tends to pre-IPO arbitrage.

"But SBI Group does not believe that small investments can reduce investment risks, and we have not avoided single large investments."

Li Peilun said. What makes SBI Group "headache" is that SBI Group's domestic equity investment fund management team must first adapt to "China's national conditions".

"Entrepreneurs who have reached an investment intention will suddenly call and say that they have found an investor with a higher bid. In Japan, SBI Group will resort to legal solutions, but in China, a more flexible solution is needed. Second, we must spend He spends a lot of time coordinating the investment management of projects with domestic investors. "Li Peilun said," But when it comes to developing business in China, Mr. Kitao and us have said the most, that is, let go and do it. "

The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting. For more information, please click download to view all articles.
Contact number 400-609-6665 800-999-3099
E-mail: