TLDR:
- 01VC, a Shanghai-based venture capital firm, plans to invest $2-3 million in 10 companies with global ambitions over the next two years.
- Low Chinese valuations and caution among global investors create a “buyer’s market” for fund managers, according to 01VC’s Ian Goh.
Chinese start-ups with global ambitions are seen as attractive investment targets by 01VC, which plans to invest between US$2 million and US$3 million in each of up to 10 companies in the next two years. Despite challenges such as economic slowdowns and property slumps, China’s economy grew by 5.2% last year and represents 30% of global manufacturing. This positions Chinese companies well for global expansion, according to Ian Goh, founding partner at 01VC.
01VC focuses on investing in robotics, consumer electronics, and business-to-business products and platforms. The firm has a US$65 million fund and is expected to invest in companies at low valuations. Due to the caution among global investors, Goh describes the current market as a “buyer’s market” for fund managers, creating investment opportunities.
Traditionally investing in early-stage companies, 01VC is now looking to invest in companies with solid cash flow. Valuations in China have decreased significantly, allowing 01VC to invest in rounds ranging from pre-A to Series B. The firm manages a total of US$300 million in assets under management across several funds, with plans for another yuan-denominated fund in the works.
Notable companies in 01VC’s portfolio include Hong Kong-based logistics company Lalamove, which plans to list on the city’s stock exchange, and Tymo and Hezhong Enterprise Cloud, specializing in beauty electronics/fashion retail and cloud computing/database solutions, respectively.
