Exclusive | China’s Megvii looks to a more favourable reception and deep pockets in its home market as an option to bankroll its growth
- Megvii is considering an initial public offering on the Nasdaq-like Star Market in Shanghai, according to several sources
- Megvii let its Hong Kong IPO application lapse in February
China’s Megvii Technology, one of the world's foremost developers of facial-recognition technology, is looking to favourable policies and more receptive investors at home to help it bankroll its expansion in artificial intelligence, according to people familiar with the matter.
The unprofitable unicorn’s listing plans come as private funding becomes harder and more expensive to secure. Venture capitalists are pushing start-ups to accept lower valuations and enunciate a clear path to profitability.
China is nurturing local hi-tech companies to fulfil its ambitions of becoming the global leader in fields such as artificial intelligence by 2030 and to offset any damage to promising start-ups from the US-China trade war and the coronavirus pandemic.