Legend Capital develops as leading local VC firm
By Wang Xu (China Daily)Updated: 2007-03-28 14:40
A: Yes. Currently, we plan to invest 30 percent from our third fund into traditional sectors. And we are considering raising a fourth fund, which could be around $150 million to $200 million. With the growth in fund size, we will deliver more growth-stage investment. Companies in China's traditional sectors also have potential for fast growth, thanks to the nation's fast economic growth. For example, Sunshine Paper and Kebao & Boloni have maintained over 50 percent growth. And we expect they could hold their IPOs next year.
Q: You have 25 investment professionals, which is a large team given the size of your funds. But as the management fee rate is basically the same for all VC firms, does that mean Legend Capital's employee payment is lower than the industry standard? Since the competition for venture professionals is getting fiercer in China, how can you retain your staff?
A: Our payment to staff is competitive. Compared with other VCs, we have more junior staff. And in other venture firms, partners' income accounts for the bulk of the payroll. The salary of juniors could only be a tiny proportion of what partners' make.
In Legend Capital, partners share bonuses with other staff members, which is part of our incentive plan. So partners cannot be greedy here.
By doing so, we give more people the opportunity to enter the industry and enhance our own talent reserve. Our vision is to be a top venture capital firm, and we will need more people, as the funds under our management will keep growing.
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