Long Hill Capital Closes $125 Million Fund I, Focused on A- and B-Series Investments in Tech-Driven Health and Consumer Services

On November 15, 2016, Long Hill Capital announced that it had successfully raised a total of $125 million for its inaugural fund in October of that year. The capital will be deployed to invest in early-stage companies in China’s technology-driven healthcare services and consumer services sectors. The team comprises professionals from top-tier venture capital firms both domestically and internationally, including NEA, Matrix Partners China, and Morningside Venture Capital, with a combined track record of over 30 years in local Chinese venture capital investment.

Changling Capital is a new generation of theme-driven venture capital fund, headquartered in Shanghai, China, dedicated to investing in technological advancements and business innovations that bring health and quality of life to every Chinese person. In the healthcare services sector, Changling Capital focuses on novel diagnostic and treatment services, mobile health, life sciences, and public health. In the consumer services sector, it emphasizes consumption upgrades, trading platforms, social entertainment, and disruptive new technologies.

Changling Capital’s Fund I is the inaugural fund established by Changling Capital, focusing on early-stage companies in China’s technology-driven healthcare services and consumer services sectors. The fund will concentrate on Series A and Series B investments, targeting approximately 20 portfolio companies, with average initial investment amounts ranging from $1 million to $10 million.

Since its inception in 2005, the founding team of Changling Capital has managed New Enterprise Associates’ (NEA) investments in China. Members of the fund team have previously participated in early-stage investments and the establishment of enterprises including CITIC Pharmaceutical, WeDoctor, Ping An Good Doctor, Hygeia Healthcare Group, Gushengtang Chain of Traditional Chinese Medicine Clinics, Blueport Interactive, LianLian Pay, Ele.me, and The Beast.

Amid the current intense debate in China over the “capital winter,” Changling Capital closed its inaugural fund in less than six months from inception to final fundraising. Jiang Xiaodong, Managing Partner of Changling Capital, stated, “Over the next decade, the number of middle-class consumers and individuals aged 60 and above in China will each surpass the total population of the United States. China’s healthcare and consumer services sectors are embracing technological innovation at an unprecedented pace. We are excited to build on our team’s strong track record at NEA and continue to support a new generation of entrepreneurs dedicated to improving the health and quality of life for people in China.”

Jiang Xiaodong, Managing Partner of Changling Capital

According to VCBeat (WeChat ID: vcbeat), Changling Capital’s inaugural fund was established by Managing Partner Jiang Xiaodong and Partner Jiang Bo, who have been responsible for NEA’s investments in China since 2005. As one of the largest venture capital firms globally, NEA manages over $17 billion in assets and has achieved nearly $500 million in exits in China over the past decade, with an annualized return exceeding 20%. Other members of Changling Capital’s investment and post-investment management team come from leading Chinese early-stage venture capital firms, including Matrix Partners China and Morningside Venture Capital. The entire team boasts a combined total of more than 30 years of local venture capital experience in China, along with over 15 years of operational experience at top domestic technology and healthcare companies such as Alibaba, Huawei, and Ping An Good Doctor. Throughout their careers, team members have participated in Series A or B financing rounds and helped build numerous leading enterprises in the health services and consumer services sectors, including CITIC Pharmaceutical, WeDoctor, Ping An Good Doctor, Hygeia Healthcare Group, Gushengtang Traditional Chinese Medicine Clinics, BluePort Interactive, LianLian Pay, Ele.me, and The Beast.

NEA became an investor in Changling Capital’s inaugural fund at the firm’s inception. Scott Sandell, Global Managing Partner at NEA, stated, “Over the 11 years of working with Mr. Jiang Xiaodong, we have consistently regarded him as an outstanding investor. We are delighted to be a long-term partner of Changling Capital and appreciate Mr. Jiang’s many contributions to NEA.” Carmen Chang, Chairman of NEA Asia, remarked, “Changling Capital focuses on healthcare services and consumer services, aligning with NEA’s global strengths in these two sectors. We look forward to maintaining a close, long-term collaboration with Mr. Jiang Xiaodong in the years ahead.” Both Scott Sandell and Carmen Chang will serve as strategic advisors to Changling Capital.

“Changling Capital’s theme-driven investment approach has impressed us. The fact that numerous outstanding companies in the healthcare services and consumer services sectors have chosen to partner with the Changling team fully demonstrates their leadership in these fields,” said Rebecca Xu, Co-Founder and Managing Director of Asia Alternatives. “We are pleased to invest in Changling Capital’s inaugural fund and look forward to seeing their continued success.”

“Investing in Changling Capital is a significant step for IFC to foster innovation in emerging markets, supporting more startups dedicated to improving the supply of high-quality healthcare services in China,” said Nikunj Jinsi, Global Head of Venture Capital at the International Finance Corporation (IFC), a member of the World Bank Group. “China is IFC’s second-largest investment destination, and we look forward to collaborating with Changling Capital to jointly support innovation and entrepreneurs in China’s health services sector in the future.”