Role of Venture Capital Firms in China’s Development
“The Chinese have accomplished in only 20 years what would take many other countries two centuries to achieve,” said James Wolfensohn, The World Bank President. China’s steep growth in all aspects in the past two decades reflects the focused efforts of the venture capital China and China Investment Corporation’s role in streamlining the financial aspects of the country. While the number of Venture Capital deals signed in 2014 was approximately 1060, it increased to 1737 in 2015 making it a record breaker year. This shows the ocean of knowledge the Venture Capitalists of China have acquired using their experience in the industry for years now.
A look at China’s Venture capital investment trend in the past, present and future clearly indicates the strategic approach of the Venture capitalists in China to make it a super economic power by the first quarter of this century. Be it the structural development, the vast variety of innovations that have sprung up or the GDP growth in comparison to other countries, the rapid growth of China astonishes countries across the globe. Here is the list of top 10 venture capital firms in China that contribute to its healthy GDP levels, rapid growth, and expansion.
Sequoia Capital China
Founded in 1972 by Neil Shen, Sequoia Capital manages eight funds worth 2.5 billion USD, which has been invested in high growth businesses in China. Managing approximately 40 billion Yuan worth assets, Sequoia Capital’s investments are spread across various business models ranging from Mobile Internet Companies to Online Cosmetic Shopping Platforms. Some businesses that Sequoia Capital has invested in are Dianping, Alibaba, June, Qihoo 360, Bona Film, Sina, Vipshop, and Meituan. Sequoia Capital plays a key role as a Venture capitalist contributing to China’s steady growth for over four decades now
Shenzhen Capital Group Co
One of the leading Venture Capital firms in China since 1999, Shenzhen Capital Group Co. has invested in many International Joint Venture Funds like Sino-Singapore Fund, Sequoia Innovation Fund, and Sino-Israel Fund. Apart from investing in such International Joint Venture Funds, Shenzhen Capital Group Co. has also diversified its investments across other types of funds. Some of its commercial funding ventures are Zhongshan Fund, Kang Wo Fund, Nanjing Fund, Venture Capital Trust Schemes and many limited partnership funds. Major businesses in which Shenzhen Capital Group Co. has invested are Kugou Player, LeTV, C2 Microsystems, Silkron, Kingtone Information and CertusNet
Formed in 2001, Legend Capital is an independent Venture Capital subsidiary of Legend Holdings. Managing 21 billion Yuan every year, Legend Capital invests in new start-up ventures in China paving way for rapid growth and development in new business areas. Legend Capital acquired a new name ��Junlian’ in 2012. Anjie Technology, Renren.com, Shanghai Luxin, Anjie Technology, Airsoft, Vance Info, AutoNavi, BitAuto, iFLYTEK, Zhaopin are some of the startups funded by Legend Capital.
New Margin Ventures
Started in 1999, New Margin Ventures aims at investing in emerging entrepreneurs to build high-class companies and businesses. Some such emerging entrepreneurs New Margin Ventures has invested in are Douban, China Netcom, Goldwind, Hanwang Technology and Western Mining. New Margin Ventures target is creating as many businesses as possible to become China’s leading Venture capitalist in the 21st century.
One of the early players in China’s Market Oriented Venture Capital Firms, Fortune Capital was founded in April 2007. Fortune Capital focuses on investing in four major sectors namely Modern Agriculture, Renewable Ener, Media and Consumer Goods and Services. Ranked among one of the best performing Venture Capital firms in China, Fortune Capital steadily contributes to China’s socio-economical scenario since its inception. Its investment portfolio consists of companies like Talkweb Information System, BlueFocus PR Consulting, Sunner Development, Coship Electronics and Eve Energy.
Primarily a private equity firm, SAIF Partners invests not only in Companies in China but also in those Companies that has considerable operations in China. SAIF Partners invest in a variety of businesses across Internet, Mobile and Mobile Internet, Cleantech, Healthcare and Information Technology. Some of the Companies SAIF Partners has invested COFCO womai.com, Sunoco, 58.com, Digital China, Eternal Asia and Bosideng. With an asset value of $4 billion, SAIF Partners is strategically focusing on investing on cash flow positive market leaders.
IDG Capital Partners
With its inception in 1993, IDG Capital Partners is the first foreign Venture Capital firm that exclusively funded Chinese firms. Legendary Pictures, Baofeng, Moncler, Tencent, Ctrip, CreditEase, Baidu, Watertown, Qihoo 360, Meinu, Home Inn, Xiaomi, Dangdang.com, Gubei, Soufun, Sohu.com, are some of the China-based Companies on which IDG Capital Partners has invested. IDG Capital Partners not only do seed, venture and growth-stage funding, but also provide them end to end support by partnering with them in all their Marketing, Channel Development, Branding and Promotion, Overseas Business Development, setting up of Finance and Human Resources related efforts
SB China Capital (SBCVC)
Having invested in major companies like Yooli.com, Beijing Shenwu Environment & Energy Technology, Alibaba, PPLive, Focus Media, BGI and Dian Diagnostics, Softbank Venture Capital manages both RMB and USD funds. With a clear cut focus on Healthcare, Advanced Manufacturing Technologies, Consumer, and Retail and Clean Technology sectors, SB China Capital Invests in Companies across different stages of its growth. Having a proven record in identifying potential startups, SB China Capital manages assets worth $2 billion
A private equity firm, Capital Today offers investment to medium and small sized Chinese Companies serving customers across the globe. Its major investments being Yi Feng Pharmacy, Kung Fu Food, JD.com, Dianping, Tudou and Tsui Wah, Capital Today’s assets are worth $1.5 billion. Capital Today focuses on strengthening China’s economy by developing small and medium-sized firms through its unique investment strategies.
KPCB China/TDF Capital
Founded by Tina Ju in 1999, KPCB China/TDF Capital is a venture capital firm that specializes in early, growth and development stage investments in China based companies. KPCB China assets are estimated to be $790 million. Termed as a prudent Venture capitalist, Ju co-founded TDF in the year 2000. In 2014, TDF partnering with China Growth Capital invested in DHgate.com, a Beijing-based business to the business model e-commerce platform. The major companies in which TDF has invested are China Auto Rental, Alibaba, Focus Media, AAC Technologies and Baidu.