Recently, Warburg Pincus and Sequoia Capital have received investments. First, Martian, a listed domestic integrated stove company, invested 70 million yuan in Sequoia Capital, and then Jinxin Reproduction, a leading assisted reproduction company, promised to invest no less than 200 million yuan in Warburg Pincus.
According to the "LP Weekly" column of China Ventures, in the past two months, at least 22 listed companies have released equity investment plans. A significant number of them are new to the primary market. There is no doubt that a number of (heavy) new entrants to the market-oriented LP are emerging.
Some new entrants cooperate with local state-owned capital, join hands with state-owned assets to form industries, and deeply participate in the investment and investment of local industrial chainsThe other part cooperates with past investors or brokerage institutions to expand upstream and downstream businesses, and returns to old shareholders by the way. The path is different, but the path is the same: to maintain a technological advantage through investment.
For GPs, it is even more important to cherish these hard-won financiers - LPs with "more money and less things" are really not much.
The Martians voted for Sequoia, and "the fellows voted for the fellows".
A seemingly traditional kitchenware company announced that it would "throw money" at the head dollar institution.
Martian, a listed company, recently announced that the company intends to invest 70 million yuan in its own funds in the new phase of Sequoia Capital**: Hangzhou Sequoia Shengheng Equity Investment Partnership (Limited Partnership). According to the relevant disclosed information, this ** mainly focuses on investment opportunities in technology, healthcare, consumption and other industries, while taking into account M&A investment opportunities.
Readers who don't know much about the kitchenware industry may not know who the Martians are for a while. This is a manufacturer specializing in the production of high-end integrated stoves. The founder, Huang Weibin, has been in the woolen sweater business for nearly 20 years, and has successively founded many brands such as Jane Eyre and Jipai. It is said that the "Jipai" brand once rushed to the third place in the woolen sweater industry in the country.
In 2010, Huang Weibin chose to cross the kitchen utensils from the clothing track and started a business in the field of integrated stoves. Subsequently, with the product X7 integrated stove designed by Japanese designer Hiroaki Tanaka, it quickly opened up the situation in the high-end market.
The story of the Martian capital began in 2016. At that time, the Martian received investment from two institutions, Anpu Capital and Taiheng Investment. Three years later, Sequoia received strategic financing. According to the Martian prospectus, Sequoia at the time was 345.6 billion yuan of **, bought 823% stake. As soon as the deal was revealed, it set off a wave in the kitchenware industry. After all, compared with the "fashionable" tracks such as the Internet, biomedicine, and new energy at that time, the business of kitchenware companies seemed far less "**".
But integrated stoves may be an exception. According to data, in the negative growth environment of the kitchen appliance industry in 2018, the integrated stove rose by 120%, and the industry sales exceeded the 10 billion mark. And due to the previous accumulation in the apparel industry, Huang Weibin has shown a strong ability to build channels. In just nine years since its establishment, Martian has established about 1,500 stores across the country (now there are more than 1,800). And Huang Weibin actively embraces online channels, according to the data of Double 11 sales in 2018, Martian sales on the two platforms of Jingdong and Tmall exceeded 13.3 billion, ranking first in the same category in the industry.
If the above investment reasons seem too official, then you can add an emotional detail: the Martian headquarters is located in Haining, Zhejiang, which is Shen Nanpeng's hometown. "Fellow villagers vote for fellow villagers" may also be one of the reasons why Shen Nanpeng made a move. So far, although it has gone through many rounds of **, Sequoia still holds 5% of the shares, and the value of the ** is about 34.8 billion, is the fourth largest shareholder of Martian. And this time, the Martians invested 70 million yuan to feed the sequoias, in addition to the hometown, it also added a layer of gratitude for companionship and the meaning of reciprocating the peach.
Of course, investing in Sequoia is not the first time the Martians have done LP.
Let's talk about the recent first, in August this year, the Martians invested 19.8 billion yuan, invested in Jinding Capital. Jinding Capital must be familiar to you, this is an investment institution that focuses on "contracting" the CVC business of listed companies. The specific way to play is to cooperate with listed companies, set up industry **, and invest in projects related to the LP industry. Previously, he has served Anta Sports, Rabbit Baby, China Pet Co., Ltd., Marubeni Co., Ltd. and other enterprises.
Further down, in 2021, Martian invested 75 million yuan in Zhejiang Kunxin Investment. This institution is not as famous as Sequoia and Jinding, but it is a real dark horse. Judging from past investment cases and regional characteristics, Kunxin Investment mainly invests in the intelligent manufacturing track, and has a lot of influence in Jiangsu and Zhejiang. Among the 23 public investment projects of the institution, all of them are companies in advanced manufacturing, new materials, new energy and other tracksAmong the invested projects, there are as many as 20 Zhejiang enterprises. For example, in July this year, Kunxin Investment participated in the C round of financing of photovoltaic cell module manufacturer Chint New EnergyIn November this year, it participated in the A+ round of investment of Oukun Technology, a developer of metal layer composite materials. The former is a subsidiary of Zhejiang giant Chint Electric, and the latter is an innovative enterprise in Zhejiang. The big and small, late and early ones can all be thrown in, which shows that they are not shallow in Zhejiang.
So, although the Martians are working with Sequoia for the first time, they have already tried their hand at the primary market. This reflects the general situation of Zhejiang enterprises: a Hangzhou investor told me that "Zhejiang businessmen are very active in venture capital, and most listed companies and family businesses are involved in the primary market." "It seems that Cheng is not deceiving me.
Chengdu giant invested in Warburg Pincus, aiming at the upper and lower industrial chains
Compared with the Martians, Jinxin Fertility is a real new player.
Recently, Jinxin Fertility announced that it signed a limited partnership agreement with Warburg Pincus, promising to subscribe to Warburg Pincus' first investment share of not less than RMB 200 million. This is the first RMB** invested by Warburg Pincus after WuXi AppTec.
Compared to WuXi AppTec, Jinxin Fertility may not be known to readers. It is an assisted reproduction company based in Chengdu. Formerly known as Jinjiang Life IVF Center in Chengdu, Sichuan, it is one of the earliest medical institutions in Sichuan to obtain an assisted reproductive service license. In 2010, Jinxin established Chengdu Xinan ** Hospital, and the founder Fan Yulan led the team to officially operate the company independently.
In 2016, with the official release of the second child in China, Jinxin Fertility began to introduce capital and accelerate expansion. It has successively introduced top institutions such as Warburg Pincus, Sequoia Capital, WuXi AppTec, CNCBI Investment, Ally Bridge Capital, Hillhouse Capital and so on. Among them, in the second half of 2017, Warburg Pincus made its first investment in Jinxin Reproduction, and in September 2019, it led a new round of financing for Jinxin Reproduction. As the largest institutional investor of Jinxin Reproduction, Warburg Pincus has invested hundreds of millions of dollars in Jinxin Reproduction, and has spared no effort to provide support for the development of the enterprise.
At the time of the investment in 2017, Warburg Pincus partner Fang Min promised, "We will use Warburg Pincus's resources and experience in the medical and health field at home and abroad to assist Jinxin Fertility to continue to expand its leading position in the domestic market and actively expand overseas markets." ”
Promise" is becoming a reality at an accelerated pace. In 2017, Jinxin Fertility spent 600 million yuan to acquire Shenzhen Zhongshan Urology Hospital 7398% equity. In 2018, it acquired the largest fertility center in Los Angeles, USA, and entered the California market. In February 2020, it acquired Rhea International Medical Center in Laos and established Jinrui Medical Center.
Subsequently, it acquired Wuhan Huangpu Maternity Hospital of Integrated Traditional Chinese and Western Medicine (later renamed Wuhan Jinxin Maternity Hospital of Integrated Traditional Chinese and Western Medicine), Hong Kong Fertility and Health Center and Hong Kong Assisted Reproduction Center, Yunnan Jiuzhou Hospital (later renamed Yunnan Jinxin Jiuzhou Hospital), Kunming Hewanjia Hospital (later renamed Kunming Jinxin and Wanjia Maternity Hospital) ...... in ChinaThese intensive expansion actions are inseparable from the strong support of Huaping institutions.
In June 2019, Jinxin Fertility was successfully listed on the Hong Kong stock market, making it the first listed company in Asia to provide assisted reproductive services. By the end of November this year, the total market value was about 10 billion Hong Kong dollars, and according to this year's interim report, Jinxin Fertility's operating income was 144.7 billion yuan, net profit attributable to shareholders 24.2 billion yuan, the largest market share among domestic non-state-owned assisted reproductive service institutions.
This time, Jinxin Fertility invested in Warburg Pincus, which is another cooperation between the two parties. "We look forward to supporting Warburg Pincus' investment in the first healthcare RMB** to promote the synergistic development of Jinxin and its colleagues in the upstream and downstream industry chains, and help China build a sustainable healthcare innovation ecosystem," she said. ”
Promote the coordinated development of colleagues in the upstream and downstream industry chains" - if Jinxin's previous acquisition of medical centers and hospitals is a large-scale horizontal expansion. So this time with the old shareholder Warburg Pincus, it is hoped to lay the foundation for vertical expansion.
Market-oriented LPs are scarce, but listed companies continue to invest
Whether it is Martian or Jinxin Reproduction, market-oriented LP is becoming a scarce resource in the primary market. At present, the proportion of state-owned LPs in the primary market fundraising has continued to increase, accounting for more than 50%. The proportion of LPs of individuals and private enterprises has been declining.
But in the past two months, some market-oriented LPs hidden under the water have surfaced one after another. According to the incomplete disclosure of the "LP Weekly" column of China Ventures, from October to November, 22 listed companies announced the news of investing in LP. See the table below for details:
Among the above companies, WuXi AppTec, Conch Cement, Bloomage Biotech and other companies are active producers and investors who have invested many times. But many more are new entrants.
Some enterprises choose to cooperate with the local state-owned capital and join hands with state-owned assets to set up production and investment, such as He's Ophthalmology in Shenyang, Chutian Technology in Changsha, Guofeng New Materials in Hefei, etc.;In addition to the Martians and Jinxin Reproduction introduced in this article, the other part also includes cases such as Changguang Huaxin's investment in Huatai Zijin, Xinruida's investment in Skyworth Venture Capital, and Zhiou's technology investment in China Merchants Capital.
The former is deeply involved in the construction of local industries and economic development, and the latter is one of the ways to repay shareholders. The two paths are different, but the logic is similar: to find new development opportunities and lay the foundation for subsequent business expansion or corporate mergers and acquisitions.
It can be seen that although the overall proportion has decreased, listed companies are still steadily and continuously investing.
This may be closely related to the current technological revolution that is changing dramatically. Whether it is a listed company or an innovative enterprise, the investment in technological innovation is never-ending - just look at the degree of "involution" of the new energy industry chain, even the giant enterprises may fall before the next winter. The biggest advantage of large enterprises in maintaining technological leadership is capital -- using investment to achieve technological leadership transfer.
Part of this investment will inevitably be tilted towards venture capital that is closer to cutting-edge technology. With the blessing of the LP of listed companies, it strengthens the industrial attributes of the institution and enhances the ability to invest in future technology. This is how the benign interaction between listed companies and investment institutions has been formed.
For GPs, those new LPs are also worth cherishing. In the first 9 months, the total profits of industrial enterprises above the national scale fell by 9 percent year-on-year0%), which undoubtedly contributed "salary" and "fire" to this cold winter.