BEIJING, Oct. 3, 2017 /PRNewswire/ -- "We are not looking for traditional businesses who are trying to build technology on top of their existing business models. We are looking for entrepreneurs who are willing to give up the traditional infrastructure and start from scratch," says China's top venture capitalist Will Jiang, "Leave your success and start over."
N5Capital, one of China's leading venture capital firms, was founded in 2013 by Will Jiang and Weiguo Zhao with a vision to build a different breed of VC firm that encompasses both Chinese entrepreneurial spirit and a winning investment philosophy. N5Capital's investment philosophy focuses on finding innovative business models rather than overestimating the power of technology. Ultimately, the bet is made on the exceptional entrepreneurs who can run a business and successfully leverage the power of the internet, rather than techies. This mind set attracts a sophisticated set of limited partners who are interested in maximizing the opportunity present in China.
N5Capital's investment strategy plays at the backdrop of the two largest trends driving China's economic engine.
Firstly, by 2020, Chinese consumption will grow by USD$2.3 trillion to hit USD$6.5 Trillion (BCG). One of N5Capital's focus has been the consumer sector, which is experiencing unprecedented growth. However, consumer behaviour is changing and VCs need to think ahead. For example, Gen Y and Millennials are not as brand loyal as baby boomers. The only way to win is through efficiency and higher gross margin facilitated by technology. In addition, N5Capital is looking for trends and opportunities in progressive digital content and formats that acquire users at zero or very low costs.
"We are looking for business people that can improve gross margin by leveraging mobile internet as infrastructure," says N5Capital founding partner Will Jiang.
Secondly, a new McKinsey Global Institute report finds that a new approach centered on productivity could generate USD$5.6 trillion of additional GDP by 2030, compared with continuing the investment-led path. N5Capital's investment approach centres on productivity improvements made through mobile tech and the Internet as infrastructure. Examples of investments that utilize this approach include Hot & Hot, a leading crawfish delivery company, which acquired upper stream supply chain from Egypt at low price and high quality and Transfereasy, an online payment and settlement solution service provider, which significantly simplifies payment through automatic application, verification and compliance for cross-border businesses.
N5Capital is currently seeking investors for the next round of funding. Through its broad network, in-depth industry knowledge, and rigorous user behavior research, N5Capital is shifting the investment landscape for both start-ups and investors.
N5Capital is a Beijing-based leading venture capital firm. Its investment philosophy targets early stage Chinese businesses in the consumer sector and industries that utilizes content generation, mobile technology and the Internet to improve productivity and gross margins. N5Capital currently manages two RMB funds and one USD fund, with total assets under management of $350 million USD. In 2016, N5Captial was awarded the Top 20 Early Stage Venture Capital Firm in China.
Phone: +86 10 64457337