CCV, a leading Chinese venture capital fund, affirms its support for hard-tech startups and globally-minded Chinese entrepreneurs despite the changing environment
Top Chinese Investors See Opportunities in Startups in Changing Environment
BEIJING, August 8, 2022 /PRNewswire/ — WeiZhou, the founder and managing partner of venture capital firm CCV, told a recent GoldmanSachs panel that his company would intensify its focus on deep technology in China and Chinese startups with global potential.
Formerly Managing Partner at Kleiner Perkins Caufield & Byer China, Wei is one of China’s most successful tech investors with a 15-year record of investing in at least one unicorn company per year. Its portfolio includes China’s largest B2C e-commerce, JD.com, and CreditEase (NYSE: YRD), the first Chinese fintech company to go public overseas.
China needs to further develop its domestic high-end manufacturing supply chain, leading to the natural growth of local hard-tech companies, Wei said, speaking at the Goldman Sachs TechNet Asia-Pacific Conference 2022.
Wei’s prediction echoes the Chinese government’s 14th Five-Year Plan (2021-2025), which made advanced manufacturing upgrades a top priority.
The latest data from the China Automobile Manufacturers Association showed Chinese auto exports jumped 73% month-on-month in May, hitting a record high for 2022.
Asked about the trend of government regulation on tech industries, Wei said regulation has impacted platform companies because the government is trying to curb monopolistic behavior.
However, according to Wei, entrepreneurs and investors are not getting into deep tech due to stricter policies or regulations. “The supply chain for high-end manufacturing is mature.”
He said changing market conditions would guide CCV’s investment strategy to focus heavily on startups in advanced AI, fintech, autonomous vehicles and robotics. He said the company would invest more in “3A companies”, meaning companies that are affordable, precise and advanced. Currently, the market is shifting from “3D companies”, i.e. boring, dirty and dangerous, to “3A companies”.
CCV has a good track record of investing in the laborless economy. It has invested in various robotics companies in different application areas, including logistics, sanitation and agriculture. It has invested in AI Force, an agricultural self-driving company, Multiway, China’s leading manufacturer of multidirectional forklifts, and Cowa Robots, one of the first L4 self-driving vehicle companies to commercialize in China. China.
Another important focus is on Chinese entrepreneurs with global potential.
“The spillover of talented Chinese entrepreneurs going overseas is a key area I focus on,” Wei said. “Chinese companies have performed well overseas, but as automation and artificial intelligence become more prominent in China’s domestic economy, there will be plenty of room for new business ventures to grow. worldwide. Therefore, we will expand our portfolio of Chinese startups with international potential. “
Internationalization has been one of the main investment themes of the CCV team. Wei was one of the first investors to partner with CreditEase (NYSE: YRD), which became the first Chinese fintech company to go public overseas, and Rong 360 (NYSE: JT), a provider of bespoke financing and lending services. In addition, CCV has also partnered with Perfect Corp, a leading SaaS beauty technology company focused on AR and AI e-commerce business solutions, in its early days.
Palmpay, which should be the next Nubank in Africa, is a spin-off of Transsnet with in-depth knowledge of the African market and has the fintech expertise of Alipay. This is another example of Chinese companies expanding business globally, Zhou said.
CCV is one of China’s leading early-stage deal venture capital firms. Founded by former managing partner of KPCB China Zhou Wei and KPCB’s original technology investment team, it manages $750 million and 2.5 billion RMB.
With the mission of “creating a new world, side by side”, CCV focuses on uncovering early-stage investment opportunities in laborless technology, digitalization and globalization for Chinese entrepreneurs.
The CCV team has maintained a 35% unicorn success rate and maintained a record of entering at least one unicorn project per year and many of its portfolio companies have become top IPO stocks in their target areas. CCV is the first round A investor in 80% of investment transactions.
CCV’s portfolio companies include JD.com (Nasdaq: JD), the leading B2C e-commerce stock, Venus Tech (002439), the first cybersecurity to go public in ChinaCreditEase (NYSE: YRD), the first Chinese fintech company to go public overseas.
Rong 360 (NYSE: JT), Tantan (acquired by Nasdaq: MOMO), JD Digital, Ximalaya FM, Shukun Technology, Perfect Corp, Transsnet Financial, MetaApp, UPower, Cowa Robot, Naxions are also on the list of portfolio companies of VCC.
Its founder, Wei Zhou, is one of China’s most successful technology venture capitalists and a former managing partner of KPCB China. He was honored as Fortune’s The most influential venture capitalist and one Chinese venture capital leader by the Financial Times.