Adrian Cheng-backed investment firm leverages New World Development resources in search of China’s next unicorns
- C Ventures, a private investment vehicle backed by Adrian Cheng, counts on its non-capital advantages to build a portfolio of promising start-ups
- Recent investments include IPO-bound Lalamove and mainland firms like RoboticPlus.AI and Fiture
China has been a fountain of opportunities for local private equity firms like Hillhouse Capital and global heavyweights like Sequoia Capital, leaving newer and niche players with all to do by counting on their non-financial advantages to build their presence.
“Good start-up companies do not lack capital, they look for good partners that help them grow their business,” managing director Ben Cheng said in an interview. “We have [other] resources that money cannot buy.”
Funding surged 157 per cent to US$156 billion globally, the most in the past decade. While funding to China-based companies declined, the first-half infusion of US$29.3 billion is still 42 per cent above the level in the same period last year, the CB Insights report shows.
“There are two categories of investors in China, one is powerful brands like Hillhouse and Sequoia, and the other is strategic investors with resources like Alibaba and Tencent,” said Cheng, who is not related to the billionaire family. “We see ourselves as belonging to the second category.”
C Ventures is prepared to boost its funding in investee companies, beyond the current range of US$10 million to US$15 million each, to as much as US$100 million, he added. While Chinese companies account for a majority of its bets, it has not ignored investments in other countries to keep up with its role of bridging the West and China.
The firm’s association with Chow Tai Fook and New World Development has helped C Ventures deploy its “intangible assets” such as hotels, shopping malls and infrastructure to attract quality start-ups, Cheng said, citing its investment in fitness technology firm Fiture as an example.
The firm joined Tencent Holdings in October in leading the US$65 million financing round in Fiture, a mirror-like workout screen that offers interactive classes and customised training programmes. The start-up achieved a US$1 billion valuation about six months after the funding.
“Fiture is a much sought-after company by investment funds,” said Cheng. “They accepted our investment because we provide them with a physical offering, allowing it to appear in New World’s subsidiary brands, including K11 and D Park malls, serviced flats, as well as its Rosewood hotels.”
“We told [them] to please take our investment,” Cheng said. “We can open doors in China for them.”
