BEIJING, May 26, 2015 /PRNewswire/ -- Peter Davison, the angel investor of the online payment giant Paypal, was in close communication with online personal wealth management firm Ju-Ai-Cai in Beijing, on May 18th. Davison has been in talks with Heng Ren, the CEO of Ju-Ai-Cai, which may lead to an investment from Peter Thiel, ex-CEO of Paypal and early investor of Facebook.
Heng Ren graduated from Stanford University with dual master's degrees in computer science and management science, and he is an experienced product management executive with previous experience at Microsoft, Oracle and eBay. Founded only six months ago, Ju-Ai-Cai has attracted 400,000 online registrations and 1,500 million Yuan asset under management.
Ju-Ai-Cai's flagship product, called "Juaicai Plus", provides personalized asset management recommendations to middle-class individuals in China, based on users' risk tolerance, expected return, duration of wealth management and other factors. "China has nearly 1.4 billion people who are looking for financial management solutions, especially the middle class who are underserved by banks and other offline financial advisors", said Heng Ren.
With 20 or so different quantitative financial models running at the backend, Ju-Ai-Cai claims that their asset allocation recommendations can accommodate to each individual's situation and the market changes every day. The models generated 80% annual return on assets during 2014 and are designed by experienced in-house fund managers, who have been previously managing billions of Yuan of assets in mutual funds.
"Our solution enables China's middle class to benefit from professional financial advisors, who only served the wealthy class in the past", said Ren. "More importantly, by allocating assets across different classes such as stocks, funds and risk free assets, we can protect users' principles before chasing for high returns."
Recently, Peter Thiel is reported to have visited China for investment opportunities. Considering the special relationship between Peter Davison and Peter Thiel, Ju-Ai-Cai may potentially be Thiel's first investment in China.