In 2025, a wave of technology companies, including Arashi Vision Inc. (688775.SH), Moore Threads Technology Co.,Ltd. (688795.SH), and Metax Integrated Circuits (Shanghai) Co., Ltd. (688802.SH), are queuing up for IPOs. Behind these star enterprises, a local Shenzhen venture capital force occupies the "center stage." From the establishment in 1999 of Shenzhen Capital Group (SCGC), the nation's first government-guided, market-operated state-owned venture capital institution, to being the first to propose "bold capital," the Shenzhen venture capital industry has traversed 25 years. Today, there are over 1,500 local venture capital institutions in Shenzhen, with assets under management exceeding 1.5 trillion yuan, cumulative investments surpassing 20,000 projects, and more than 1,000 cultivated listed companies.
As a firsthand witness to the development of China's venture capital industry, Jin Haitao, Chairman of Qianhai Ark, traces the core reasons for Shenzhen's venture capital success to a unique advantage combining one concept with two supply chains. "The 'one concept' is encouraging innovation and tolerating failure, which provides the most fertile ground for our industry," he explained. "The 'two supply chains' double the probability of entrepreneurial success and significantly reduce potential risks: one is the product supply chain, where Shenzhen has formed a complete and highly responsive industrial support system from R&D to production. The other is the financial supply chain, where Shenzhen possesses a comprehensive, multi-tiered financial support system."
At the recent Shenzhen Venture Capital 25th Anniversary Conference hosted by the Shenzhen Venture Capital Association, the stories of three "investment CPs" – Fortune Capital with Zhongqing Robot, Co-Win Venture with Genemind, and Sungrowth Capital with BGI Group – reveal the "accompanying philosophy" of Shenzhen venture capital: encouraging innovation, tolerating failure, and supporting companies through economic cycles.
Zhongqing Robot & Fortune Capital: "Securing a Position" Trumps Bubble Concerns In 2025, the embodied AI track is surging in popularity. Zhongqing Robot completed several funding rounds within a year, with its core investor, Fortune Capital, investing consecutively. "The price of good companies keeps rising. We invested in a round in July (2025) and again in November; another round is now necessary," said Liu Zhou, Founding Partner and Chairman of Fortune Capital. His decisiveness stems from a long-term judgment of the sector. As early as two or three years ago, Fortune Capital had already begun布局 (bùjú - laying out/positioning in) artificial intelligence and embodied AI, clearly stating that such industries would account for 30-40% of its future fund allocation. "RMB funds missed the 'Internet+' wave; we cannot miss 'AI+'," Liu Zhou stated bluntly, noting that the regret RMB funds felt from missing investments in internet giants like ByteDance and Pinduoduo has made venture capital firms more determined regarding the AI+ sector.
The entrepreneurial persistence of Zhao Tongyang, founder of Zhongqing Robot, impressed Fortune Capital's investment team. During the seven years when the humanoid robot sector was neglected by the industry, Zhao's companies were acquired twice. At his most difficult time, he only had enough money left for one year of his two children's school fees. "If I didn't succeed the next year, there would be no money for tuition." Between 2016 and 2018, Zhao founded two robot companies, both of which ultimately failed due to funding shortages. In 2019, Zhao founded his third robot company, gaining recognition in the industry with the first-generation robot dog, Dogotix. The following year, the company was acquired by He Xiaopeng, and Zhao co-founded PXing AI with him. However, due to strategic differences in the sector, they parted ways in 2023. XPeng Motors bought all shares of PXing AI and renamed it XPeng Robotics. In October 2023, Zhao registered and established Shenzhen Zhongqing Robot Technology Co., Ltd.
"We like investing in serial entrepreneurs, especially those who have failed," Liu Zhou explained, noting that entrepreneurs who have experienced setbacks understand better how to avoid risks. Zhongqing chose Fortune Capital not just for financial support but also for the early recognition. "Among our investors, Fortune Capital was the first major Shenzhen-based institution to invest in us. The first choice is that they have ample funds, to be honest," Zhao Tongyang said. "More importantly, they saw and believed in us when many others did not, which surprised me, so I chose Fortune Capital."
Faced with the rapid valuation increases of star projects like Zhongqing and the prevalent talk of an AI bubble, Liu Zhou maintains a clear perspective. "The price of good companies keeps rising, but for star projects in promising sectors, securing a position is more important." He does not shy away from industry bubbles. "After the last internet bubble burst, Alibaba and Baidu were born. Often, investing is about dancing with the bubble." Currently, Zhongqing Robot's newly released T800 model's comprehensive physical performance has surpassed that of 90% of adult males. Zhao Tongyang revealed that the humanoid robot product is expected to learn to perform more delicate tasks within six months, including laundry and complex household chores, followed by more practical work. Fortune Capital's continued investment provides capital support for its technological iteration. "We hope that in the next 25 years, no matter which sector the phenomenal projects emerge from, Shenzhen venture capital will be present," Liu Zhou said.
Genemind & Co-Win Venture: A 200 Million Yuan Investment Over Four Years to Define the "Global Life Lithography Machine" "The process from 0 to 1 has no 0.8 or 0.5; if you can't reach 1, you just can't reach it." This statement by Yan Qin, Chairman of Genemind, encapsulates the arduousness of developing gene sequencers. Gene sequencers are hailed as the "global life lithography machine," constituting a complex interdisciplinary platform involving over 20 fields of study. Genemind, founded in 2012, took eight years to launch its self-developed high-throughput sequencer. Before that, they had approached nearly 50 potential investors, with many skeptical, saying, "No one in China can produce such complex equipment," and "Without a product ready, people still dare not invest."
Fortunately, a group of early investors who "recognized the swift steed" bet on Genemind. Subsequently, investments from firms like Co-Win Venture in the B+ round provided crucial "from technology to market" momentum. Yan Qin recalled that Zheng Weihe, Chairman of Co-Win Venture, decided to invest after hearing the project pitch and sharing a lunch; the funds arrived in less than three months. "He didn't start by asking about valuation but about the technology, product, and value creation. It made me feel I had met someone who understood me." As a lawyer-turned-investor, Zheng's support went beyond capital. Over four years, Co-Win Venture invested a total of approximately 200 million yuan and provided comprehensive empowerment in areas like government resource connections, capital planning, and equity incentive design.
"An asset management company is both a 'capital partnership' and a 'human partnership.' We are not simply connecting capital but cooperating at an ecosystem level," Zheng Weihe stated, emphasizing that for unprofitable high-tech enterprises, all-round support is more important than mere capital injection. Two years ago, Genemind faced severe cash flow pressure. "Many shareholders and institutions advised us to quickly cut the most cash-burning project to save one-third of our expenses and survive," Yan Qin recalled. However, that project was core to the company's future revenue, projected to contribute up to 60%. Therefore, he argued fiercely with the shareholders, "As long as we complete this project, the future returns will be enormous. If we cut it, even if we get funding later for R&D, the progress might be delayed by three years, and the opportunity will be gone." Co-Win Venture supported his judgment, which was a relief to Yan Qin. "When facing a low point, many investors might apply a one-size-fits-all approach, especially in the healthcare sector. But healthcare inherently requires long-term investment; every choice and decision at each step is crucial."
The direct reward for this trust was substantial: In February of this year, a major industry event presented Genemind with a historic opportunity. The project once recommended for cutting had become the company's sharpest weapon – its developed product quickly captured market share, contributing nearly 25% of revenue. Zheng Weihe's persistence stemmed from a deep understanding of the sector: "The ultimate consumption is health. In the era of longevity, sectors like gene sequencing and medical devices are worth long-term investment." Genemind's rapid growth confirmed his judgment – the company successfully navigated the "valley of death," with its products moving from the lab to the clinical market. Today, Genemind has become one of only three companies globally capable of covering full-throughput gene sequencers. It has cooperated with over 60 countries worldwide, with 2025 revenue approaching 400 million yuan, achieving a breakeven point.
BGI Group & Sungrowth Capital: Nearly 20 Years of "Running Alongside" to Seize "Discourse Power" in Gene Tech BGI Group, founded in 1999, is now a world-leading frontier institution in life sciences. The cooperation between Sungrowth Capital and BGI Group began with an unsuccessful project – shortly after BGI moved its headquarters to Shenzhen in 2008, they collaborated to commercialize the gene cloning technology invented by Dr. Du Yutao. Ultimately, commercialization failed due to various constraints, but the experience built mutual trust. "From the earliest BGI Ark to now, whenever BGI launches projects with industrialization needs, Sungrowth Capital unhesitatingly joins first," said Du Yutao, Party Committee Secretary and Senior Vice President of BGI Group, noting that in BGI's view, investors are not merely capital providers but "fellow travelers."
This trust was fully demonstrated at a critical juncture during the fundraising for BGI Genomics (MGI Tech). At that time, disputes over MGI Tech's valuation persisted for over a year. Sungrowth Capital resolutely led the investment when the funding need was most urgent. "At that time, there were significant debates and challenges internally for the management and within Sungrowth itself." "Controversy is significant in the life sciences field because it differs most from other sectors in one key aspect: it faces dual regulation," analyzed Luo Fei, Chairman of Sungrowth Capital. "First, products need registration with the National Medical Products Administration (NMPA), and second, pricing is also regulated. So, unlike other fields like new materials or AI, for early-stage life science projects, besides the technology itself facing质疑 (zhìyí - questioning/challenges), its registration and pricing will affect the overall evaluation of the company – that is, whether it is investable."
"But valuation is just one aspect; we place greater importance on the autonomous and controllable development of gene technology in a country with a population of 1.4 billion," Luo Fei recalled. Previously, the gene technology field, especially the gene sequencer market, was long dominated by European and American companies. But a turning point arrived quickly. In 2013, BGI invested $117 million to acquire the US-based listed sequencer manufacturer Complete Genomics (CG), entering the upstream sequencer manufacturing field. Subsequent breakthroughs by local enterprises, represented by MGI Tech, in gene technology broke the patent monopolies and technical restrictions of international giants.
This support between capital and enterprise is also bidirectional. When Sungrowth established its second healthcare fund in 2019, BGI Genomics supported it as a Limited Partner (LP). When Sungrowth established Chengdu's first healthcare fund in 2022, MGI Tech also participated in support. "BGI not only industrializes its own achievements but also supports other innovative life science technologies by backing industry funds. This is a relationship of bidirectional trust and bidirectional support," Luo Fei stated, noting that this mutual trust has sustained their cooperation for nearly 20 years, witnessing BGI's growth into an industrial giant.
Now, as companies like Zhipu AI rush towards IPOs, Shenzhen venture capital is ushering in a "harvest season." Liu Zhou looks forward to the next 25 years where "Shenzhen venture capital is present in all phenomenal projects." Zhao Tongyang hopes that "Shenzhen capital and entrepreneurs will unite to place humanoid robots at the world's apex." Yan Qin plans to build an international brand in the gene sequencing field, while Du Yutao firmly believes that "the future of life sciences is as vast as the stars and the sea."
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