This is another weather vane event in China’s venture capital industry
On November 3, Shenzhen Angel No. 1 Venture Capital Partnership (Limited Partnership) (Angel No. 1 Direct Investment Fund ) initiated by Shenzhen Angel Investment Guidance Fund Management Co., Ltd. (hereinafter referred to as Shenzhen Angel Fund Management Company ) was officially launched. The fund started market-based fundraising in July this year, and raised 300 million yuan in just three months.
This is the first angel direct investment fund initiated and established by Shenzhen Angel Fund Management Company. In the future, it will focus on cutting-edge technology. Outstanding sub-funds have invested or plan to invest in projects to further participate in and support the growth of start-ups.
Shenzhen Angel Fund of Funds, established in 2018, is a strategic and policy fund invested and established by the Shenzhen Municipal Government. The current scale has reached 10 billion yuan. It is the largest market-oriented angel fund of funds in China. In the past three years, the Shenzhen Angel Fund of Funds has provided capital to more than 60 venture capital institutions, and the sub-funds have delivered more than 400 projects. This has brought a large number of high-quality projects to Shenzhen Angel Fund of Funds, and also created favorable conditions for trying direct investment now.
In recent years, the phenomenon of LP follow-up investment has often sparked discussions in the venture capital circle, but direct investment by angel LPs is still rare. This time, Shenzhen Angel Fund of Funds took the lead in trying to end it. Next, we expect the direct investment funds of China Angel Investment Co., Ltd. to be listed collectively within three months
01
Raised 300 million yuan
Shenzhen Angel Fund of Funds, involved in direct investment
The first direct investment fund of Shenzhen Angel Fund Management Company was listed on November 3, and the Angel No. 1 direct investment fund initiated by Shenzhen Angel Fund Management Company was officially launched with a total scale of 300 million yuan. Focus on cutting-edge technology application scenarios, select outstanding sub- fund investment or projects to be invested as follow-up investment, and continue to help and participate in corporate growth.
At today’s launch ceremony, Shenzhen Angel Fund of Funds Management Co., Ltd. , Co., Ltd. and Fosun Chuangfu, Guoxin Capital, Songhe Capital, Huada Group, High-tech Investment Group, Everbright Holdings Fund of Funds, Harbin Venture Capital, Zhongzhao Capital, Ruiling Shares and other Angel No. 1 direct investment funds external limited partnership people sign a contract.
According to the investment community, the limited partner lineup of Shenzhen Angel No. 1 Direct Investment Fund brings together various resources required for the whole life cycle of enterprise development, such as angel stage, growth stage, listing guidance, industrial resource docking, etc., to create a comprehensive resource service system, give full play to the complementary advantages of management companies and investors, and invest in good projects.
This is of great significance for Shenzhen to cultivate strategic emerging industries and future industrial development. The founding partner of Li Wei said in his speech that he was optimistic about the development prospects of Angel No. 1 Direct Investment Fund. The participation of angel FOFs in direct investment will more effectively promote the development of the angel investment industry. The cultivation of the fund’s investment projects and the selection of the best investment strategy will accelerate the realization of value discovery and value creation.
In his speech, Jiang Yucai, vice president of Shenzhen Venture Capital Group and chairman of Shenzhen Angel Fund of Funds, said that Shenzhen Angel Fund of Funds, on behalf of the Shenzhen government, supports market-oriented angel investment sub-funds, and uses the power of government funds to mobilize market forces and increase Support for the Angel Project. The establishment of Angel No. 1 Direct Investment Fund has far-reaching significance. On the one hand, it will further improve the sensitivity and influence of the Angel Fund of Funds on projects, which will help improve the effect of service projects; on the other hand, it will further increase the support of government funds for angel projects, extend the support chain, and promote innovation in Shenzhen Industrial Development.
Yao Xiaoxiong, chairman of Shenzhen Angel Fund Management Company, said in his speech that the official launch of the direct investment business marks the formal formation of the three major business sectors of the management company “sub-fund investment, direct investment and ecological operation”, and Shenzhen Angel Fund of Funds has entered a new stage of development.
According to Yao Xiaoxiong, management companies have six advantages in conducting direct investment business:
First, Shenzhen Angel Fund of Funds has invested in a number of excellent sub-fund management institutions, with large sub-fund groups and angel project teams, and has the ability to explore high-quality projects; second, the management company and sub- fund managers have formed a good interaction mechanism. Each sub-fund actively recommends projects to the management company, creating a rich source of projects for Angel No. 1 Direct Investment Fund; thirdly, Angel No. 1 Direct Investment Fund is a follow-up investment fund. The investment object is the project that the sub-fund has invested in or plans to invest in, which can effectively filter risks; Fourth, the ecosystem under construction by the management company can provide a full range of value-added services for the project; Fifth, Angel No. 1 Direct Investment Fund has received investment from all parties strong support from the authors and other partners. At the same time, through the follow-up investment of employees, the interests of the team and the direct investment fund are deeply restrained; sixth, the management company clarifies the logic of the direct investment business. The projects invested by Angel No. 1 Direct Investment Fund will have four characteristics, namely, good industry, focusing on industries with large growth space; excellent team, double choice between investor background and project founding team; excellent institution, focusing on Projects invested by the Angel Fund of Funds in excellent sub-funds; good valuation, to realize investment value through reasonable valuation. The management company will give full play to its rich advantages in direct investment business, drive the development of Shenzhen’s innovative industries, and strive to bring good returns to all investors.