Chinese Companies Receiving US VC Money - 2016

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Chinese Companies Receiving US VC Money - 2016

After extensive search through media sites and industrial databases, we were unable to find Chinese Series A companies that were funded by U.S. venture capitalist firms (VC) in 2016. After expanding the search to include investments from around the world, we found 10 companies that met the request’s specifics. The companies are listed as follows: Cainiao Logistics, WM Motor, JD Finance, Ping An Good Doctor, Taobao Movie, iCarbonX, ROOBO, Zero Zero Robotics, Juzhen Financials, and Shenzhen Gowild Robotics. All of these companies were found from sources that ranked them among the highest funded startups during the year. The companies are detailed in the attached spreadsheet.

Findings

We were able to find 10 Series A Chinese Companies that received VC funding from firms around the world in 2016. Here is a brief review of each company. They appear in order based on the amount of funding that they received.

Cainiao Logistics, the logistics affiliate of Alibaba, received $1,440,000,000 in March 2016. Investors all over the region contributed including, Temasek Holdings, GIC, Khazanah, and Primavera Capital. This company is unique in that it doesn’t hold any inventory instead they rely on third-party warehouses and businesses to fulfill their orders. Cainiao was created to boost the speed and coverage of Alibaba’s logistics network. The company currently is partnered with approximately 90 logistics companies who use its data-driven logistics platform. They have lost hundreds of millions of dollars since opening.

WM Motor, the electric car manufacturer, was recognized in the media as receiving $1 billion in funding. This is highly unusual since it is in its early startup stage. Founded by Freeman Shen, WM Motor is one of several Chinese companies in the electric car industry. The company has plans to release its first car in 2018 and plans to make more than 100,000 vehicles a year for the next 3 years.

JD Finance is the consumer subsidiary of JD and received $1 billion from Sequoia Capital China, China Harvest Investments, and China Taiping Insurance. They are one of several tech companies that are tapping into the enterprise and consumer demand for credit in China. This includes Alibaba’s Ant Financial. The company may soon become its own entity as JD explores other options for its internet finance business.

Ping An Good Doctor is a “subsidiary of China Ping An Group, an important member of the internet business segment.” It was established in August 2014 and is headquartered in Shanghai, China. They received $500 million in financing from VCs.
Taobao Movie received $269 million in financing from VCs. It is an online ticketing platform that Alibaba Pictures owns. Launched in 2014 by Alibaba Group it was purchased in 2015 by Alibaba Pictures Group.
iCarbonX, is led by Wang Ju, the co-founder and board member of Beijing Genomics Institute (BGI), a world-renowned genetics research center. The company received $145 million in financing from Tencent. It’s a biotech startup that wants to create a one-stop platform that analyzes a variety of data types to include blood samples and genetic information.
ROOBO received $100 million in funding from iFlyTek, with whom it partnered. As a result, we will see ROOBO integrate iFlytek’s language recognition and intelligence speech into ROOBO’s robots. The company also makes smart bone connection headphones, an intelligent drone, and a VR headset. It has 300 employees and 7 offices located around the world.
Zero Zero Robotics received $25 million in VC funding for 2016. It is a startup that is based in Beijing. The funders included Zhenfund, IDG, Zuig, and GSR Ventures as well as others. They offer a Hover Camera that is a portable indoor/outdoor autonomous flying camera system.
JuZhen Financials develops clear and settlement solutions for post-trade situations utilizing blockchain technology. Its name is changing to Juzix. The new name reflects the expansion of company goals and finds it shifting away from just financial applications to other applications of blockchain tech. The company is looking possibly to enter into the healthcare or aviation industries. It received $23 million in VC funding.
Shenzhen Gowild Robotics received $15 million in funding in 2016. It is an “A Shenzhen AI and personal robot startup.” Their newest robot went on sale in 2017 for approximately $860.

Conclusion

After extensive research for Series A Chinese companies that received VC funding from U.S. firms in 2016, none were located. After extending that search to financing from VC firms around the world, 10 companies were found. Cainiao Logistics, WM Motor, JD Finance, Ping An Good Doctor, Taobao Movie, iCarbonX, ROOBO, Zero Zero Robotics, Juzhen Financials, and Shenzhen Gowild Robotics all received funding from venture capital firms all over the world in 2016. The companies are detailed in the attached spreadsheet.
Sources
Sources