OVERVIEW OF THE INVESTING STRATEGIES AND GOALS OF THE QIMING US HEALTHCARE FUND

• Qiming U.S. Healthcare Fund's primary objective to drive innovation and grow business enterprises as well as to promote overall industry advancement and social development.
• The company's goal is to help its partner companies to be successful in every manner.\
• The company primarily focuses on early stage health care opportunities across the US.
• The company's main strategy is to enhance the support for its acquired companies such as LetsGetChecked, ZappRx etc by providing sufficient investments to the companies from time to time.
• In 2018, Qiming US Healthcare Fund invested $12 million in LetsGetChecked. The funding was provided with the objective of scaling LetsGetChecked, enhancing development of the technology platform that links customers to laboratories, and for growing the full clinical support team.
• In 2017, Qiming US Healthcare Fund invested $25 million in ZappRx with the aim of enhancing the company's team, accelerate company growth, and drive provider adoption across the US.
• In 2017, Qiming US Healthcare Fund also invested $10 million in Platelet BioGenesis, a Boston-based spin-out from Harvard University laboratories. The investment was provided to “repeat investigation new drug-enabling studies and establish a scalable industrial process to manufacture clinical grade platelets".

COMPANY HISTORY

• Qiming US Healthcare Fund was established in the US a subsidiary Qiming Venture Partners in 2017 and it is headquartered in Seattle, WA.
• The company primary areas of interest include bio-therapeutics, med tech and digital health technologies.
• Qiming US Healthcare Fund's equity investments range from $5 to $12 million.

COMPANY FUNDING SOURCES

• The only funding source of Qiming US Healthcare Fund is its parent company that is QIming Venture Partners.
• In April 2018, Qiming Venture Partners invested $120 million in Qiming US Healthcare Fund.
• In 2019, Qiming Venture Partners raised $250 million for Qiming US Healthcare Fund.

COMPANY'S TRACK RECORD

• According to Gary Rieschel, the founding Managing Partner of Qiming US Healthcare Fund, the performance of Qiming US Healthcare Fund has validated that company's team and sector are focused on strategy.
• Qiming US Healthcare Fund has generated positive returns to LPs, as well as in each sector of operation having multiple successful IPOs in the last two years.

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Limitations of the Research

RELATION TO QIMING VENTURE PARTNERS USA

• It was Shanghai-based Qiming Venture Partners that launched Qiming Venture Partners USA in 2017.
• Qiming Venture Partners USA, which concentrates on "healthcare opportunities in the United States and Europe," handles the following two funds, which were announced after Qiming Venture Partners USA was launched: Qiming U.S. Healthcare Fund I and Qiming U.S. Healthcare Fund II.
• Even though Shanghai-based Qiming Venture Partners now has a United States arm, Qiming Venture Partners USA, it raises not only RMB funds but USD funds as well. It manages 11 funds in total, excluding the two funds Qiming Venture Partners USA handles, and only five of these funds are in RMB. The rest are all dollar-denominated.
• Even though the China-based and United States-based businesses have their own separate funds, sectors, and geographies to handle, they take advantage of U.S.-China synergies. The funds are not designed to be cross-border funds, however.
• There is substantial overlap between Qiming Venture Partners's RMB fund investors and USD fund investors.

INVESTMENT STRATEGY AND GOALS

• Investing in early-stage companies and expansion-stage deals is Qiming Venture Partners's investment strategy. Over half of the investments of the firm were in early-stage companies.
• Qiming Venture Partners focuses on the following sectors: Internet and Consumer (Intersumer), Information Technology, Healthcare, and Cleantech.
• It invests mostly in China- and United States-based companies. The bulk of its investments, however, goes to Chinese companies.
• Similar to other Sino-U.S. venture capital firms, Qiming Venture Partners has recently increased its targets for new funds. This is in response to the demand of limited partners for greater exposure to market opportunities that are coming into view.
• When it comes to choosing which companies to invest in, Qiming Venture Partners focuses on companies that are young and innovative and that demonstrate fast growth.
• The focus on China does not mean that Qiming Venture Partners does not invest in other countries. Just this month, it was announced that the firm led the latest funding round of India-based Pratilipi. This means that the firm does invest in deserving startups even if they are located outside China.
• The firm places a premium on data or numerical information, so it prefers companies that have figures that demonstrate the potential of their business models.
• Qiming Venture Partners's goal is to be "the investor of choice for top entrepreneurs in China."
• It aims to help companies and entrepreneurs succeed, and it also aims to promote growth, innovation, advancement, and social development in its sectors of focus.
• It hopes to "succeed with diligence" and to inspire with its wisdom and expertise.

FUNDING SOURCES

• The Limited Partners (LPs) or the funding sources of Qiming Venture Partners for its RMB fund include the following investors:
• Oriza Funds of Funds (FOFs)
• CDB Capital Fund of Funds (FOF)
• CICC
• Xiamen C&D Corporation
• Suzhou Fund
• LUPU Investment
• Hang Tang Wealth
• The LPs of Qiming Venture Partners for its USD fund include the following investors:
• Princeton University
• Massachussetts Institute of Technology (MIT)
• Duke University
• Commonfund
• Hall Capital Partners
• Mayo Clinic
• The Dietrich Foundation
• NGS Super
• The current LPs of Qiming Venture Partners appear satisfied with the venture capital firm's performance, as most of them were the firm's LPs in previous funds. Princeton University has been an LP of Qiming Venture Partners right from the start.

HISTORY

• In 2006, Qiming Venture Partners was founded.
• Since it was founded, Qiming Venture Partners has made 366 investments, 101 of which were investments in which the firm was the lead investor.
• The total amount Qiming Venture Partners was managing as of April 2018 was more than USD 4 billion, with this amount spread across 12 funds. At that time, five of these funds are RMB funds, while seven are USD funds.
• Qiming Venture Partners now has 13 funds and the latest 10 of these funds are as follows:
• Qiming U.S. Healthcare Fund II (USD 250 million), announced in February 2019
• Qiming U.S. Healthcare Fund I (USD 120 million), announced in April 2018
• Qiming Venture RMB Fund V (RMB 2.1 billion), announced in April 2018
• Qiming Venture USD Fund VI (USD 935 million), announced in April 2018
• Qiming Venture Partners RMB Fund IV (RMB 1.5 billion), announced in November 2016
• Qiming Venture Partners Fund V (USD 650 million), announced in January 2016
• Qiming Venture USD Fund IV (USD 500 million), announced in April 2014
• Qiming Venture Partners RMB Fund III (RMB 1 billion), announced in February 2014
• Qiming Venture Partners RMB Fund II (RMB 605 million), announced in June 2012
• Qiming USD Fund III (USD 450 million), announced in May 2011
• In 2017, Qiming Venture Partners launched Qiming Venture Partners USA to focus on U.S. healthcare funds and set up offices in Cambridge, Seattle, and San Francisco Bay Area.
• Just this June 2019, Qiming Venture Partners participated in the Series A funding round of China-based Pulsar Technology, the Series B funding round of India-based Pratilipi, and the Series B funding round of China-based 61Draw.com.

TRACK RECORD

•  No less than 20 private companies in the firm's portfolio have valuations of at least USD 1 billion, and 17 of these companies have turned out to be real unicorns.
•  Unicorns in the firm's portfolio include Xiaomi, We Doctor Group, UBTech, Face++, Mobike, APUS, Tujia.com, TutorGroup (VIPABC), Tuhu.cn, Zhihu, Gan & Lee, Luojisiwei, Wacai.com, Meituan-Dianping, Meili Inc., Musical.ly, and Sinocelltech.
• The senior team members of Qiming Venture Partners in China, including Managing Partners Gary Rieschel, Duane Kuang, JP Gan, Nisa Leung, and William Hu, all have extensive experience in operations and investing.
•  More than 50 of the companies in Qiming Venture Partners's portfolio are now publicly traded.
• In the 18 months preceding April 2018, nine of the companies in Qiming Venture Partners's portfolio were able to successfully complete initial public offerings (IPOs). Eight of these nine companies, Hexing, Meitu Inc., CSD. Tellgen, AmoyDx, Berry Genomics, Zai Lab, and Bilibili, are all based in China.
•  Each of the four sectors Qiming Venture Partners focuses on just recently had multiple IPOs.
• According to Managing Partner Gary Rieschel, as far as returns to investors are concerned, Qiming Venture Partners has "consistently ranked in the very top echelon of China-based venture investors."

RESEARCH STRATEGY

MARK MCDADE

Bio

• Mark McDade is the Managing and Founding Partner of Qiming Venture Partners USA. He is also the director of Dermira and holds board positions and advisory roles at other companies, such as Five Prime Therapeutics, WindMIL Therapeutics, and Twine Health.
• He graduated from Dartmouth College with a Bachelors in History in 1977, and 7 years later graduated with a degree from Harvard Business School. His most notable experiences include being CEO of BioPharma, which he resigned from in 2007, and COO of UCB Pharma, which he worked at until 2016.
• Mark also served as CEO and Co-Founder of Signature Bioscience, President and COO of Corixa Corporation, and COO of Boehringer Mannheim Therapeutics.

Interviews

• Mark McDade had a phone interview with Med City News in which he stated that the pharmaceutical industry is increasingly focused on patient-related outcomes instead of theoretical outcomes because there is a need from funds like Qiming's to understand real-world evidence.

GARY RIESCHEL

Bio

• For over 25 years, Gary has successfully operated and invested in many companies as a senior executive, entrepreneur, business strategist, and investor. Some of these companies include Cisco Systems, Softbank, Sequent Computer, and Intel.
• His portfolio includes 12 companies which grew to over $1 billion market cap. He has also invested in science and technology companies such as Lanzatech, Hexin, LP Amina, Bloom Energy, and CSD Water and Sludge.
• He is a Founding Partner of Qiming Venture Partners and has been there since 2004. He served on the Board of the Asia Society since 2001. He served on the Board of Trustees of Reed College from 1999 to 2010 and founded Softbank's Venture Capital arm in 1996. He served there until 2004.
• Gary graduated from Reed College with a Bachelors in Biology in 1979 and graduated with an MBA from Harvard Business School in 1984.

Interviews

• In an interview with Forbes, Rieschel spoke freely on his thoughts on China's lack of reform of its state-owned companies, the Communist Party, and what he sees as non-progressive IPO rules. He also spoke o the outlook for Chinese smartphone companies Xiaomi and Huawei.
• Gary Rieschel spoke on Qiming Venture Partners and the trade way between the US and China, which he calls just a trade dispute. He still sees a great opportunity in the Southeast Asia region because of its technology infrastructure and human resources.
• In an interview with China Global Television Network, he spoke on changing perceptions of Made in China products. He also spoke on the 2025 plan to invest in more technological products made in China.

CHRIS SHEN

Bio

• Chris Shen studied Biology a Stanford and graduated in 1995 with a degree in Biology. He then went on to obtain a Masters in Biomechanical Engineering, and subsequently received his MD in Medicine and an MBA. He did all these programs at Stanford.
• Mr. Shen is now the Managing Partner at Qiming Venture Partners USA and specializes in investments in biopharmaceutical and medical device companies. He was involved in healthcare organizations most of his life, starting at New Enterprise Associates in 2001 as Principal and becoming Principal of Essex Woodlands Health Ventures in 2007.
• His most notable investments are worth over $2 billion in market capitalization. Some of these investments include Twelve, Nellix Endovascular, Bridgepoint Medical, Ivantis, and Moximed. He also worked in Japan as a Design Engineer for Pfizer's Strategic Innovation Group.

RESEARCH STRATEGY