CCV, one of China’s leading venture capital funds, reaffirms its support for hard-tech startups and globally focused entrepreneurs in China despite the changing environment

Leading Chinese investors see opportunities in startups amid changing environment

BEIJING, August 8, 2022 /PRNewswire/ — WeiZhou, founder and managing partner of venture capital firm CCV, said at a recent GoldmanSachs panel that his firm will increase its focus on deep technology in China and Chinese startups with global potential.

Former Managing Partner at Kleiner Perkins Caufield & Byers China, Wei is one of China’s most successful technology investors with a 15-year track record of investing in at least one unicorn company a 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 supply chain of high-quality manufacturing, which will lead to the natural growth of domestic hard technology companies, Wei said, speaking at Goldman Sachs TechNet Conference Asia Pacific 2022.

Wei’s forecast reflects the Chinese government’s 14th Five-Year Plan (2021-2025), which has made advanced manufacturing improvements a top priority.

The latest data from the China Association of Automobile Manufacturers showed that China’s auto exports rose 73% month-on-month in May, hitting a record high for 2022.

Asked about the trend of government regulation of tech industries, Wei said the regulations have affected platform companies because the government is trying to fight monopolistic behavior.

However, according to Wei, entrepreneurs and investors are not targeting deep technology because of politics or tight regulations. “The supply chain for high-end manufacturing is mature.”

He said changing market conditions will direct CCV’s investment strategy to focus heavily on startups in advanced AI, fintech, autonomous vehicles and robotics. He said the firm would invest more in “3A companies”, ie. affordable, accurate and advanced companies. The market is currently shifting from “3D companies”, i.e. boring, dirty and dangerous, to “3A companies”.

CCV has a good track record of investing in a zero-labor economy. He has invested in various robotics companies in various application areas, including logistics, sanitation and agriculture. Invested in AI Force, an agricultural autonomous driving company, Multiway, China’s number 1 manufacturer of multi-directional forklifts, and Cowa Robots, one of the first L4 autonomous driving companies to commercialize in China.

Another important focus is Chinese entrepreneurs with global potential.

“The excess number of talented Chinese entrepreneurs setting up positions overseas is a key area I am focused on,” Wei said. “Chinese companies have performed well abroad, but as automation and artificial intelligence become more important in China’s domestic economy, there will be plenty of room for new business ventures to grow globally. That is why we will expand our portfolio of Chinese startups with international potential. “

Internationalization is one of the key investment themes for the CCV team. Wei was one of the earliest 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 personalized financing and lending services. In addition, CCV also partnered with Perfect Corp, a leading SaaS beauty technology company focused on AR and AI business solutions for e-commerce, in its early stage.

Palmpay, expected to be the next Nubank in Africa, is a spin-off from Transsnet with a deep understanding of the African market and has fintech experience from Alipay. This is another example of Chinese firms doing business globally, Zhou said.

About CCV

CCV is one of the leading venture capital firms for early-stage deals in China. Founded by a former managing partner of KPCB China Zhou Wei and the original technology investment team at KPCB, which he manages 750 million US dollars and 2.5 billion RMB.

With the mission of “creating a new world, side by side”, CCV focuses on discovering early-stage investment opportunities in zero-labor technology, digitalization and globalization for Chinese entrepreneurs.

The CCV team maintains a 35% unicorn hit rate and maintains a record of seizing at least one unicorn project per year, and many of its portfolio companies have become the first IPO stocks in their focus areas. CCV is the lead A-round investor in 80% of investment deals.

CCV’s portfolio companies include JD.com (Nasdaq: JD), the first B2C e-commerce stock, Venus Tech (002439), the first cybersecurity IPO ChinaCreditEase (NYSE: YRD ), the first Chinese fintech company to IPO 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 CCV portfolio companies .

Its founder, Wei Zhou, is one of China’s most successful tech venture capitalists and a former managing partner at KPCB China. He is revered as Fortune The most influential venture capitalist and a A leading Chinese venture capitalist from the Financial Times.

SOURCE CCV

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