For many entrepreneurs, the prospect of getting angel funding can seem daunting. However, despite China’s reputation as a market dominated by venture capitalists and private equity firms, there are several large-scale angel investors operating in the country – and they are eager to find promising startups. In this article, we’ll walk you through how to identify angel investors who are interested in your business needs, how to approach them with an investment proposal, and how to start building a relationship with these valuable potential partners.
1. Yintai Group
Yintai Group is a leading financial services group in China. Yintai was founded in 2004 and has since grown into one of the largest private wealth management companies in China.
Yintai Group’s business model is built around four pillars: private banking, securities brokerage, wealth management and investments. Its subsidiaries include Yintai Asset Management Co., Ltd., Shenzhen International Financial Holdings Limited, Guoxin Securities (HK) Limited and China Everbright Bank (Hong Kong).
2. Fosun International
Fosun International is a Chinese conglomerate founded in 1992 by Guo Guangchang. It is now the parent company of Fosun Group, which has a net worth of .7 billion and contains 95 companies worldwide. The company is listed on the Hong Kong Stock Exchange and has invested in several companies including Morgan Stanley and Cirque du Soleil.
3. yunqi partners
Yunqi Partners is a Chinese venture capital firm founded in 2012 by Wang Xiaochuan and Yixin MA. In February 2015, Yunqi Partners announced that it had raised 0 million for its first fund. In May 2017, the company announced that it had raised 0 million for its second fund. The company’s investments include Chinese companies like Meituan-Dianping, Meizu and Mobike.
4. Creditease FinTech Investment Fund
As a leading fintech company in China, CreditEase Fintech Investment Fund (CEF) has invested in more than 200 companies so far. CEF is active in several segments of the fintech industry, including consumer lending and personal finance platforms; third-party payment platforms; wealth management products; digital banking services; Asset Management Solutions; data security technologies; and AI-enabled technologies.
In addition to traditional investment activities such as equity rounds, private equity funds are also involved in providing loans to fintech companies through its subsidiaries CreditEase Finance Leasing Co Ltd (“CFL”) and Minsheng Asset Management Co Ltd (“MAMC”). The CFL provides working capital loans with monthly interest rates ranging from 0% to 14%. MAMC offers long-term asset loans at an annualized interest rate ranging from 8% to 12%, which are secured by assets such as intellectual property rights or receivables arising from the sale of products or services provided by customers using these intellectual property rights. “
5. North Light Venture Capital
Founded in 2000, Northern Light’s venture capital is headquartered in Beijing and has invested in more than 200 companies. This angel investor’s investment is on AI, Big Data, Internet and Mobile sectors. Some of its portfolio companies include Meituan-Dianping, Tik Tok, and Baidu Cloud.
Northern Light Venture Capital’s portfolio also includes over 100 unicorns (companies with valuations over billion). He currently has an extensive network of over 100,000 entrepreneurs across China who provide him with valuable insights into new startups that may be worth investing in.
6. LightSpeed China Partners
LightSpeed China Partners is a venture capital fund based in Beijing, China. It is the first Chinese venture capital fund to be established by a Chinese entrepreneur.
LightSpeed China Partners was founded by Xiaoyong Xu, who had previously invested in US startups such as Snapchat, Uber and Airbnb. The firm’s investment strategy focuses on developing businesses with strong technology capabilities and potential for global expansion in the internet, e-commerce and social media sectors.
7. Sherpa Venture Capital
Sherpa Capital Venture is a venture capital firm that invests in early-stage technology companies. Sherpa has invested in more than more than more than 100 companies around the world, including China, Japan, Korea and the United States.
To date, Sherpa has supported over 50 unicorns, including Slack and Spotify to name a few. In addition to these notable successes, Sherpa also has a strong portfolio of startups that have been acquired by large public companies such as Uber (via Didi Chuxing) and Amazon (via Twitch).
8. Get closer
Closea is a Chinese startup that was founded in 2018 and focuses on early-stage startups. Closea was founded by Liu Wei, who is also the founder of Tencent, one of China’s largest internet companies. In total, Closea has raised billion to date and has invested in over 100 companies since its inception. According to its website, Closea invests in a wide variety of industries, including artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and human-computer interaction.
Some examples of successful startups that have received funding from Closea include:
- Qidea – A real estate e-commerce platform for new home buyers
- Salt Games – An AR gaming company focused on creating immersive gaming experiences
9. Capital J.D.
JD Capital is a venture capital firm in China with over billion in assets under management. The company has invested in more than 100 companies, including Didi Chuxing, Mobike, Ele.me and Zhihu.
JD Capital’s partners include the founders of JD Group, which operates China’s largest online shopping platform; UCWEB founder Zhu Xuedong; Jumei founder Wu Yuchen; Baidu co-founder Zhang Chaoyang; Tencent co-founder Peng Lei; and Uber co-founder Li Shufu.
Conclusion
The angel investor market in China is still young and growing, but it has already made significant progress in becoming a bigger part of the investment ecosystem. It will continue to grow in importance as more investors enter the space, providing funding for startups that need it most.