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"The growth rate of the enterprise exceeds expectations"
The roadshow focused on the new generation of information technology and biotechnology tracks, inviting a group of potential unicorn projects invested by Shenzhen Angel Mother Fund for roadshows, including 8 projects including Kangxi Biotechnology, Liangxuan Technology, Northkey Technology, Shengyang Optics, Sima Dada, Deep Light Technology, Beierlock, and Noel Medical. In addition, representatives from over 80 top venture capital institutions, including Shenzhen Venture Capital, Dongfang Fuhai, CICC Capital, Bank of Australia Capital, High tech Investment, Qirong Venture Capital, and Honghui Fund, were also attracted to participate in this roadshow.
Unicorn and potential unicorns, as excellent representatives of science and technology innovation enterprises, have always been the focus of venture capital institutions. In February of this year, Forbes China released the list of new generation unicorn companies. In 2022, a total of 368 Chinese companies were shortlisted, among which Shenzhen had 13 new unicorn companies on the list, the highest in Guangdong Province and ranking among the top three large and medium-sized cities in China.
"The new unicorn forces with a Chinese industrial background are moving towards the center of the stage at a faster pace." Forbes China analysis shows that it usually takes about 5 to 6 years for Chinese startups to grow into unicorns, and the average age at which these industries incubate unicorn companies is less than 4 years old.
The newly listed unicorn companies in Shenzhen include: Xinwangda EVB, Growatt, Tairuo Technology, Hangshun Chip, Rock Core Technology, Nut Projection, RENOGY If New Energy, Yunbao Intelligence, Jiaoxia, Dianxiaomi, Delan Minghai, Kaisi and Superparametric Technology. The company mainly operates in the fields of intelligent hardware, new energy, semiconductor chips, and enterprise services.
In addition to the aforementioned enterprises, the Hurun Research Institute's "2022 Hurun Global Gazelle Enterprises" lists the high growth enterprises that are most likely to reach a unicorn level valuation of $1 billion within 3 years after their establishment in 2000. 28 companies from Shenzhen have made it to the list, including ACC Super Decoration, AutoX, Zhongke Lanxun, e-Battery, etc.
In 2022, for the first time in many years, Shenzhen included "unicorns" in its government work report, with the goal of adding 5 unicorn enterprises. On April 8th last year, the Implementation Opinions on Accelerating the Cultivation and Growth of Market Entities proposed that by 2025, there will be over 3.2 million enterprises, 10 to 12 Fortune Global 500 enterprises, 22000 national high-tech enterprises, and new "unicorn" enterprises
At the roadshow on that day, many venture capital firms present were already investors in the roadshow project. One representative of the venture capital firm told the reporter, "Today, I came mainly to follow up on the progress of the project, and the growth rate of the enterprise exceeded expectations."
In addition, during on-site communication with investment institutions, the reporter also learned that they are more concerned about the track related to the roadshow project, and some even come specifically from Shanghai to Shenzhen to pay attention to the project situation.
It is understood that as of the end of 2022, Shenzhen Angel Mother Fund has selected over 70 outstanding global GPs to establish sub funds, invested in over 700 angel projects, and cultivated over 100 unicorns and potential unicorns.
Li Wenzong, founder of Shengyang Optics, told reporters that the company has already raised funds in two rounds, with Shenzhen Angel Mother Fund being the investor in the first round and CITIC Construction Investment in the second round.
The reporter found that most of the on-site roadshow projects have received attention and support from multiple venture capital institutions. Kangxi Biotechnology has received investments from institutions such as Shenzhen High tech Investment, Yuansheng Venture Capital, and Pengnian Venture Capital; Sima Dada has received investments from institutions such as Beijing Media, Wanda Investment, and Qidi Star; Deep Light Technology has completed three rounds of financing since its establishment, and has been favored by Fengrui Capital, Qidi Star, Beihang Investment, Cathay Venture Capital, and others.
Cultivate and strengthen angel investment
"Compared to Beijing and Shanghai, the characteristic of Shenzhen's venture capital industry is that private capital is more active than state-owned capital," said Chang Huili.
The industry usually measures the development level of angel investment by the proportion of angel investment to GDP. From the perspective of the World Bay Area, according to industry third-party organizations, the angel investment scale in the San Francisco Bay Area was approximately 3.07 billion US dollars in 2020, accounting for 0.56% of the Bay Area's GDP; The angel investment scale in the Guangdong Hong Kong Macao Greater Bay Area is less than 500 million US dollars, accounting for only 0.03% of the region's GDP.
However, the opportunities faced by Shenzhen have already emerged. Li Xinjian, General Manager of Shenzhen Angel Mother Fund, summarized the opportunities for angel investment development in the Guangdong Hong Kong Macao Greater Bay Area into three words: "soil," "environment," and "policies.".
According to the Global Science and Technology Innovation Center Development Index 2022, Shenzhen ranks 12th among global science and technology innovation centers, second only to Beijing and Shanghai in China.
In recent years, Shenzhen has vigorously promoted the construction of major innovation platforms, including a comprehensive national science center, Pengcheng Laboratory, Guangming Science City, Xilihu International Science and Education City, and Hetao Shenzhen Hong Kong Science and Technology Innovation Cooperation Zone. As of the end of last year, according to publicly reported data from the media, Shenzhen had a total of 86 full-time academicians, 22000 high-level talents, 251 high-precision and shortage teams from home and abroad, over 190000 overseas returnees, and a total of over 6.62 million talents of various types, demonstrating the clustering effect of innovative talents.
In addition, with the recent comprehensive resumption of customs clearance between mainland China and Hong Kong, Shenzhen and Hong Kong are once again welcoming new opportunities in science and technology innovation cooperation. Lu Jinqin, member of the Standing Committee of the All China Federation of Industry and Commerce and President of the Federation of Industry and Commerce of all districts in Hong Kong, told reporters, "Hong Kong and Shenzhen have a solid foundation of cooperation and a desire for mutual benefit and win-win cooperation. We look forward to further strengthening cooperation between the two regions and jointly building an international science and technology innovation center for the Greater Bay Area for the country."
At the location of the "Shenzhen Venture Capital Day" event - Luohu District, Huang Tuo, Director of the Financial Services Bureau of Luohu District, also told reporters, "Luohu District attaches great importance to the science and technology innovation industry and welcomes potential unicorn enterprises."
According to Huang Tuo, for enterprises such as unicorns, potential unicorns, and gazelles, Luohu District can provide rewards in a certain proportion based on the total investment received by the enterprises in recent years, with a proportion of up to 10% and a maximum amount of 50 million yuan.
Secondly, for growth oriented enterprises, Luohu District can support equity conversion, leverage the leverage effect of industrial support funds, and support the rapid development of newly introduced enterprises in the growth stage.
