Riding the Waves, Sifting Sand for Gold: 2021 Investment Leaders Forum Charts the New Decade of China's Venture Capital Industry

2China's Venture Capital and Private Equity Market in 2020Amidst a rapidly shifting landscape of rising and falling tides, everyone is riding the waves.In 2021, against the backdrop of a new turning point in the global pandemic and gradual economic recovery, the equity investment market is brimming with opportunities and poised for growth.3Month1On the 9th, co-hosted by Zero2IPO Group and PEdaily,2021 Investment Circle 100-Person Forum: Spring Breeze Rises Again, Successfully Held at the Marriott Resort & Spa Yalong Bay in Sanya.

This time，GGVGGV Capital, Qiming Venture Partners, Legend Capital, Matrix Partners China, SDIC Innovation Investment Corporation, CCV Capital, Huaying Capital, Plum Ventures, InnoAngel Fund, etc.Many representatives from renowned institutions and enterprises were invited to join this year's opening event.“Gathering Moment.”Gathering insights from across the globe and harnessing expertise from all directions, we interpret investment trends for the next decade for those navigating the currents of our times. We provide in-depth analysis of high-growth sectors such as new consumption, technology, and general health at this new historical juncture.。Over 100 Distinguished Guests Convene in Sanya，Together, we begin, ride the waves, set sail, and embark anew.

22021 marked the beginning of the third decade for China’s venture capital and private equity industry. Ni Zhengdong, Founder, Chairman, and CEO of Zero2IPO Group, delivered a speech at the conference, stating: “There is much in China’s private equity investment industry that warrants reflection,Prior to 2020, China’s private equity industry was dominated by the internet sector. However, by 2021, in addition to the internet, key players emerged across various fields, including healthcare, technology, consumer goods, and manufacturing. In the past two to three years, the number of companies with market capitalizations exceeding RMB 100 billion in sectors represented by healthcare, consumer goods, and semiconductors has surpassed that of internet companies—a trend worthy of our attention."Ni Zhengdong positions Zero2IPO Ventures as the industry'sInfrastructure,“We are building the new infrastructure for this industry, serving every stage of China’s venture capital and private equity journey, while empowering the development of VC/PE industries in cities across the country.”。”

The subsequent roundtable forum featured even more highlights, with Ai Cheng, a specially invited investor and founder of iAsk, serving as the guest moderator.；MoreGGVFu Jixun, Managing Partner of GGV Capital; Gan Jianping, Founding Partner of Ince Capital; Kuang Ziping, Founding Managing Partner of Qiming Venture Partners; and the Managing Director and Chief [Officer] of Legend CapitalInvestmentLi Jiaqing, Chief Partner of Guozhong Venture Capital, andCEO Shi Anping, Founding Managing Partner of Matrix Partners China, Xu ChuanSheng, Founding Partner of Zhongding Capital andCEO Yan Li,Wei Zhou, Founding Managing Partner of Creation Partners Capitaland other well-known investorsrespectively inEngaged in in-depth exchanges at the roundtable forum themed “A New Decade: Riding the Waves of the Investment World” and “Investors Who Brave the Wind and Waves,” jointly delivering a feast of ideas.

A Decade of Venture Capital, A Decade of Life: On the Golden Sectors for China’s VC Landscape in the Next Three Years—and the New Decade Ahead—as It Enters Its ThirtiesGary Ku, Founding Managing Partner of Qiming Venture Partners, prioritizes the healthcare sector.“Healthcare has strong universal values; I believe it is a sector worth paying attention to.”GGV CapitalManaging PartnerFu Jixun stated““AR glasses, including VR glasses, coupled with our infrastructure, represent a promising direction,” said Li Jiaqing, Managing Director and Chief Investment Officer of Legend Capital. “For a five- to ten-year horizon, I would choose healthcare; for a three-year horizon, semiconductors. Computing power demand is ubiquitous today, making it an area of significant shortage in the short term, or at least the near-to-medium term.”"Zhongding CapitalFounding Partner,CEOYan Li choseFocusing on the theme of enhancing digital efficiency. 

(VCBeat: The New Decade, Riding the Waves in the Investment Arena)

Amidst the surging tides of a rapidly changing era and an increasingly complex external environment, investors have taken the lead in addressing how to“Uncertainty”: Gold Emerges from the Sand After the Great Waves Subside,Chief Partner of Guozhong Venture Capital,CEO Shi Anping put forward the “Four No’s Principle” on site—no trend-chasing, no free-riding, no haste, and no envy. “We hope that every project we invest in will make tangible contributions to society in the future, such as creating jobs and generating tax revenue, rather than achieving a trillion-yuan market capitalization today only to become a bubble tomorrow.”

In the view of Zhou Wei, Founding Managing Partner of Creation Partners Capital, investment sometimes requires luck.“Directions we once held in low regard a decade ago have now given rise to numerous major projects—an outcome that was previously unimaginable, highlighting the limitations of our cognitive horizons. To establish a firm foothold, the only approach is to break through these mental constraints and promptly discard outdated experiences.” Regarding opportunities over the next five years, Gan Jianping, Founding Partner of Ince Capital, stated: “I hope that through continuous research and dialogue with entrepreneurs, I can identify new directions in human-computer interaction earlier than most of my peers—my only goal is to be slightly ahead and faster.”

(VCBeat: Investors Riding the Waves)

Big Health, New Consumption, and Tech Investment Continue to Be Hot Sectors. During the afternoon industry forum, multiple guests conducted trend analysis and engaged in heated discussions on industry investment. Risks and opportunities coexist,22020, COVID-19 PandemicPromoteThe health and wellness industry is experiencing rapid growth,"Big health" emerged as one of the key focal points at this year's Two Sessions, with numerous pharmaceutical and biotechnology companies becoming favorite targets for capital investment. Gan Shixiong, founding partner of Shengshan Asset Management, highlighted the sub-sectors he views most favorably for investment in the coming year.—Synthetic biology. “This sector is particularly intriguing. It focuses on upstream materials, for which we have specifically recruited PhDs and scientists to conduct research. The work is closely tied to the industry, generating revenue immediately upon commercialization, with exponential growth in income.” Qu Liefeng, Founding Partner of Lianxin Capital, expressed optimism about the application of gene editing, small-molecule protein degraders, and photo-electro-magnetic technologies in high-end medical devices.

New Consumer Brands Predicted to Be China’s FutureThe Most Certain Opportunities in the Next 5–10 Years: Where Is the New Consumer Sector Headed?Tiantu InvestmentCEO, Founding PartnerFeng Weidong pointed out:“Human psychological needs are relatively stable; however, with consumption upgrading and technological empowerment, a multitude of new consumer categories and brands have emerged. Our channels and media have also undergone tremendous changes due to technological advancements and generational shifts. Abstractly viewed as the means of reaching customers for value exchange and communication, this underlying structure remains fundamentally constant.“Regarding future investment opportunities in the consumer sector, Fu Zhekuan, Chairman and Founding Partner of Qifu Capital, stated: ‘We primarily focus on areas related to personal and household expenditures. As China’s global economic influence continues to grow, Chinese products going global must have intellectual property (IP); otherwise, it will be difficult for them to become global brands.’ Ji Wei, Founding Managing Partner of Huaying Capital, mentioned that sectors such as pet care, men’s grooming, plant-based beverages, and standardized food and beverage offerings are among their key areas of interest.”

With the transformation and upgrading of the economic structure, the importance of scientific and technological innovation has become increasingly prominent. The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China further“Technological Innovation” Elevated to a Strategic Priority. Regarding investment in the technology sector, Han Yuze, Founding Partner and Chairman of Lianchuang Capital, stated, “Within technology-driven enterprises, we place the highest value on core intellectual property. Once we validate the underlying technology, we further assess the entire team to determine whether the company can achieve genuine growth.” Meanwhile, Li Lun, Founding Partner of Panda Capital, emphasizes that teams must demonstrate profound industry insight and strong capabilities in integrating and implementing solutions within the industry. He also expects teams to have a clear understanding of the market, customer needs, and application scenarios, as well as the ability to effectively integrate these elements within the industrial context.

Meanwhile, withAt the intimate symposium themed “New Voices from the Tide,” attendees engaged in in-depth discussions on current hot industries. The forum’s signature segment—the “Splashing Waves” themed gala dinner—drew to a perfect close amidst the sound of rolling waves and gentle spring breezes. With coconut-scented sea breezes and lush green landscapes as witnesses, the event was hailed as featuring “the trendiest leaders, the most exhilarating gathering, and the most fiery discussions.” Venture capital professionals will continue to seek certainty amid uncertainty, foresee the future, and embrace the bright prospects of the next decade.