Recently, driven by a series of policy measures intensively introduced at the national and local levels, China's venture capital industry is ushering in new opportunities for high-quality development. These policies aim to cultivate long-term patient capital, promote a virtuous and sustainable cycle between new technological productive forces, industries, and finance, and build a venture capital ecosystem with Chinese characteristics of socialism.
As the entire venture capital industry is actively moving towards this goal, we have found a pioneer - Heroad Investments, whose establishment of the industry's first service-oriented technology ESG venture capital fund is approaching the end of its investment period. Let's analyze the practical results of this "bold capital"in all aspects.
01 Precisely Defining Service-Oriented Technology Investment Strategy for High Returns
Heroad Investments has observed that with the acceleration of population aging and the rapid development of artificial intelligence technology, production supply and consumer demand are undergoing profound changes. Service-oriented technology products oriented towards safety, convenience and health are gradually replacing homogenized consumer technology products. At the same time,innovative products with enhanced user service experience and sustainable development attributes are more likely to enter the global market. Based on this understanding, the Heroad Investments team pays special attention to innovation leaders in products and services. During the three years of fund operation, significant results have been achieved. Before the end of the investment period, 90% of the projects in the portfolio have achieved valuation growth, with several projects partially exited, effectively covering the investment costs.
Photo | Service-oriented Technology Map
02 Innovate the active ESG investment model and break through the “impossible triangle”
“We make good investments·We make investments good”is the core value of Heroad Investments. The development of an enterprise is an irreversible socialization process, and a great enterprise must have both commercial and social values. Social value will lead the development of commercial value. Based on this concept, Heroad Investments has independently developed an active ESG investment model in the whole process of investment - from industry research, project screening, investment decision to post-investment management. The model adopts a dual-track system and integrates the evaluation, development and management mechanism of social value into every link of the investment process, effectively improving the profitability and risk control ability of the fund's investment portfolio, and realizing the impossible triangle of return-risk-Shen value of early-stage projects.
Photo | Part of Portfolio Companies
03 Service-oriented technology ESG Phase II fund, focusing on Chinese original global technology brands
Adhering to the successful strategy of the first phase of service-oriented technology ESG venture capital fund, Heroad Investments is about to start the fundraising work of the second phase fund of this theme. It is reported that under the accelerated globalization trend of Chinese technology brands, the new fund will continue to focus on original service-oriented robots and intelligent hardware brands. After the practice and accumulation of the first phase of service-oriented technology fund, Heroad Investments has systematically constructed two key capabilities: one is the ability to help enterprises expand into high-income countries and regions around the world; the other is the integration ability to introduce original invention technologies of global universities.
Photo | Active ESG Investing Model
We will continue to pay attention to and look forward to this GP based in Shenzhen. We expect it to continuously practice and explore a sustainable development path for China's venture capital.