Qiming U.S. Healthcare Fund

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Part
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Qiming U.S. Healthcare Fund

Some investing strategies of the Qiming U.S. Healthcare Fund include investments in its acquired companies such as LetsGetChecked and ZappRx with the primary objective of driving drive innovation and enhancing the support for the companies. Qiming U.S. Healthcare Fund has made a number of investments since its inception that clearly shows its strategies vividly.

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.

Your Research Team Applied the Following Strategy:

We commenced our research to determine the investing strategy of the Qiming U.S. Healthcare Fund by first looking for the data points regarding the company's investing strategy, goals, history, funding sources and track record of the company in areas of its operations. We first reviewed the official website of the company by scanning through its press releases, media releases and other relevant sections. Unfortunately there was very limited information available on its official website. However, from going through all of its press releases, we were able to identify its investing strategies. We then searched through databases that host companies' profiles, media outlets, financial market databases and press release databases such as Crunchbase, PR News Wire, Seeking Alpha and Finsmes. From these sources we were able to obtain most of the relevant information. However, since the company is relatively new (just founded in 2017) there is very limited info available regarding its track record. Yet we have provided some very relevant performance insights of the company in track record section that we were able to obtain.

We then searched through researches, surveys, and/or case studies ever done in the past two years regarding the company hoping to obtain any related facts or insights regarding "how the company has performed" or "how much revenue has it gathered", etc so that we could add more data to the track record section. We searched through research databases such as Research Gate, Research Guides, Pew Research, etc. Unfortunately, none of the sources contained any relevant information most likely due to the unavailability of such data as no previous researches or case studies seem to have been conducted on this topic.

We then attempted to look for the statistics of the company market in a hope to get any relevant insight regarding its performance over these two years since its foundation. We searched through news journals and online magazine such as US News, The Economist, etc. We also searched through private companies' data sets such as Statista, Forrester, DB Hoover, Forbes and Investopedia. Unfortunately neither the above databases yielded any relevant results or related to the funding provided by Qiming U.S. Healthcare Fund apart from what we had earlier found in our research.

Limitations of the Research

There is very limited information available related to the track record of the company, most probably because the company is very new and also due to the fact that it has not publicized any annual report or revenue yet.
Part
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Part
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Qiming China Fund

Shanghai-based Qiming Venture Partners, the venture capital firm behind the Qiming China Fund, invests mostly in early-stage or expansion-stage companies in the Internet and consumer, information technology, healthcare, and cleantech sectors. In contrast to its United States arm, Qiming Venture Partners USA, which manages two U.S. healthcare funds, Qiming Venture Partners manages 11 funds that are a combination of RMB- and USD-denominated funds and are considered the "China Fund." The companies Qiming Venture Partners invests in are mostly Chinese companies.

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:
  • 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

Qiming Venture Partners, the company in the provided link, technically has no fund named Qiming China Fund. Given this and the fact that this "Qiming China Fund" is being compared with its U.S. counterpart, we took "Qiming China Fund" to mean the funds that are being managed by the China-based Qiming Venture Partners and are not being handled by the U.S. based Qiming Venture Partners USA. Qiming Venture Partners USA handles two of the 13 funds that parent company Qiming Venture Partners has, and these two are the two U.S. healthcare funds that were announced after Qiming Venture Partners USA was launched. This means that the remaining 11 funds, which are not U.S. healthcare funds, are being managed by the China-based Qiming Venture Partners. Managing Partner Gary Rieschel notes that China funds could be in dollars (USD) or renminbi (RMB)

Part
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Part
03

Qiming Venture: Partners in the US

Your research team was successful in finding background information and interviews for Mark McDade and Gary Rieschel, Managing Partners of Qiming Venture Partners USA. We were only able to find background information for Christopher Shen. Our research strategy and our detailed findings can be found below.

MARK MCDADE

Bio

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

Even though we found interesting background information on Chris Shen, we were unable to find any interviews. Our first strategy involved looking through news and blog sites such as Forbes, AP, and others. We found very few news articles mentioning Mr. Shen. The few we found only mentioned him as a partner at Qiming Venture Partners, such as the news about Cardialen's recent fundraising last year. This was the most likely strategy to bring a result, and it failed, so we had to change strategy.

Our second strategy involved looking through video sites such as Youtube and Vimeo for any tv interviews or any interviews or talks he gave on camera. We found a video of a tv interview with Gary Rieschel, and we believed we could do the same for Mr. Shen. Instead of videos, we only found promotional videos of Standford Schools of Medicine and Business, two schools he attended. We realized the only reason these videos came up was that he was mentioned on the pages as a notable alumnus. Other web results only showed him as an attendee at certain conferences, but we couldn't find any talks or quotes involving Mr. Shen from those conferences. Hence, we changed strategies again.

Our next strategy was to find and look through his social media profiles and see if he put up any self-made videos or videos on talks he had done. We did this because many experts in their field put up videos of themselves to show their followers their expertise. What we found was that Mr. Shen had no Facebook profile, or at least any we could find, and we found no Twitter or Instagram profiles. His Linkedin page only had basic information and didn't show anything of note that we could use. We also did a search for his website, but the only website we found was of a digital artist also named Chris Shen.

From what we saw, Chris Shen keeps a very low profile compared to the other partners, and when he is mentioned in news articles, it's only to acknowledge his position in the company.
Sources
Sources