Leveraged buyouts, growth capital, angel investments, and seed funding—these private transactions take place, largely out of the public’s eye, not only in Connecticut or Silicon Valley, but also in Beijing, Shenzhen, and Shanghai.
In 2016, China’s private equity (PE) and venture capital (VC) firms raised over $70 billion, more than 20% of total such funding globally. At the same time, these firms also deployed capital to the tune of $223 billion, accounting for more than 70% of global PE/VC investments.
As late comers, these Chinese firms have rapidly grown into formidable financiers. Most Chinese PE firms are particularly interested in products and services that can be commercialized and scaled up quickly in China. They tend to invest in areas that align with China’s shift to a more consumer-driven economy. Meanwhile, Chinese VCs have been active players globally, particularly in Silicon Valley. They have focused on areas such as artificial intelligence, Internet of Things, and electric vehicles.
ZhenFund is a Beijing-based seed fund founded in collaboration with Sequoia Capital China. The fund primarily focuses on the Internet and software space, including mobile, gaming, enterprise software, e-commerce, Internet of Things, and education. It has invested in more than 150 firms, including Shiji Jiayuan, Lightinthebox, Jumei, 17zuoye, Meilele, Zhaogang.com, Dayima, and 51talk.
In January 2014, ZhenFund, along with Danhua Capital, Sequoia Capital, Lightspeed Venture Partners, Microsoft Ventures, and China Rock Capital, co-led a $12 million Series A investment in EverString, a predictive marketing technology company in San Mateo, California.
In June 2015, ZhenFund, along with Ceyuan, co-led a $2 million investment in Pier Inc., a San Francisco- based big data underwriting engine and mobile credit app company.
In December 2016, ZhenFund along with Presence Capital, Colopl VR Fund, Amino Capital, and Eversunny Ltd. co-led a $3 million investment in Visbit, a Sunnyvale, CA-based virtual reality and 360-degrees video streaming company.