Panlin Capital, a leading venture capital firm focusing on Chinese technological innovation, announced the successful closing of its 12th RMB-denominated main fund, "Chengdu Panlin Xiangxu Fund". This fund is the first established by Panlin Capital in Chengdu, and it is another highly institutionalized RMB fund established by Panlin Capital after its Shanghai Science and Technology Innovation Flagship Fund.
Panlin Chengdu Xiangxu Fund is a strategic move made by Panlin Capital in Chengdu against market trends, with the support of both new and old investors. In addition to reinvestments from entrepreneur-represented veteran investors, the fund has also garnered support from institutional investors such as government-guided funds, national master funds, market-based financial institutions, and listed companies. These include local Chengdu institutions such as the Chengdu Productivity Promotion Center, which is a municipal-level science and technology start-up angel investment guidance fund, Chengdu Science Service Group, as well as CICC Genesis, a national emerging industry venture capital fund. Listed companies like Luzhou Laojiao (000568) and Eurocrane (603966) are also among the supporters.
In recent years, the structure of investors in Panlin Capital has been continuously optimized, especially with a significant increase in the proportion of institutional investors in the Panlin Chengdu Xiangxu Fund. This is of milestone significance for Panlin Capital: with entrepreneur-represented veteran investors serving as the cornerstone, complemented by government-guided funds, the two form the basis of Panlin's fund-raising efforts. On top of this, listed companies and financial institutions are also introduced. The support from these different types of investors validates Panlin's capabilities in terms of returns, reinvestment, and investment matching with industries. All of this is the result of Panlin's deep cultivation and professional accumulation in the field of technological innovation.
Li Yuhui, the founding managing partner of Panlin Capital, said: "I want to thank both our new and old investors for their trust and support, and for accompanying Panlin in supporting technological entrepreneurs to participate in the magnificent cause of national scientific and technological innovation. Over the past several years, Panlin has also accompanied and witnessed numerous science and technology enterprises growing into industry leaders, helped scientists successfully transition to entrepreneurs, and brought tremendous momentum to the translation of scientific research and industrial progress. We will continue to delve into the field of technological innovation, creating substantial returns for our investors while continuing to support the entrepreneurs among scientists."
Panlin Chengdu Fund focuses on To B and technology fields, guided by demand and technology. It mainly invests in To B companies (software, intelligent equipment, industrial aggregation platforms) that meet the demand for cost reduction, efficiency improvement and quality enhancement of B-end, as well as hard technology enterprises that have autonomous control over domestic replacement or key technology (critical components, equipment category). As of now, the fund has completed investments in several tech projects including Percipio.XYZ, Chipanalog, Terapark, AIPlanck, Easylogic, Ruiyun Cold Chain, Ele007.com and O-cubes.
This investment strategy has evolved from "To B" to "To B and Technology". It is largely a deeper understanding by Panlin of China's industrial transformation and upgrading, as well as China's future development. "To B" is based on the emergence of personalized needs from China's emerging consumer groups, which forces the B-end to respond quickly and produce corresponding products or services. At the same time, the arrival of China's aging society and the demand for macro-industrial upgrading in China are forcing the B-end to reduce costs, improve quality, and increase efficiency. "Technology" is based on the great strategic backdrop of China's national economic development safety and autonomous control over high-end sophisticated technology, the breakthrough in autonomous research and development of key technology is in line with the national will.
Based on their early experience in Chengdu, Panlin Capital is planning a new comprehensive fund in Chengdu in conjunction with industries and listed companies. The main investment direction will cover Panlin's two major areas: Healthcare and To B and Technology. They hope to excavate and accompany more resilient growth of China's independent innovation technology companies with greater momentum.
