The recent Central Economic Work Conference proposed to encourage the development of venture capital and equity investment.
○There are many high quality projects that do not get venture capital, and those that are still funded by venture capital must have their own strengths.
○ Let's see what's so great about these companies.
01 Changing Investment Logic○ Just recently, Xianwei Visual Technology (Nanjing) Co., Ltd, founded in 2022, received more than 100 million yuan of investment from venture capital. The company's founder, chairman and general manager Cao Feng and as usual every day is stuffed with things, there is money in the account, he said that he still has to pass from top to bottom the orientation of living in a tight life, the whole company should always have the entrepreneurial spirit of hard work.
○ A good company and a company that takes money from venture capitalists are two different kinds of businesses. During the active period of venture capital, many PPT investment segments and storytelling roadshow routines are widely prevalent.
On the one hand, it is an unprecedented challenge for a group of entrepreneurs who are far from standing firm; on the other hand, the current economic environment can also find real gold.
The reason why Xianwei Vision is favored by venture capitalists is that it not only develops advanced products aiming at the world's frontiers, but also plans for overseas markets from the very beginning.In the year Xianwei Vision was founded, the "Full Femtosecond Laser Corneal Refractive Surgery Device R&D Project" led by Xianwei Vision was selected for the 2022 National Key Research and Development Program.
○ China introduced laser corneal refractive surgery in 1993, and 20 years later, ZEISS, the world's leading technology group in the optics and photovoltaics industry, launched the first full-femtosecond surgical device in the world, and to this day, its product, VisuMax, is still the only piece of equipment in the world that can perform full-femtosecond surgery. The Chinese market, on the other hand, contributes more than half of the market value of full femtosecond surgery for Zeiss.
The chief scientist of Xian Micro Vision is Prof. Zeng Shaoqun, who has been working on femtosecond laser microscopic optics for more than 30 years, and initiated the research of full femtosecond surgical equipment in 2014, the year after the world's first full femtosecond surgical equipment was launched.
○ Domestic myopic population of about 600 million people, the penetration rate of full femtosecond surgery is less than 0.3%, referring to the growth rate of similar surgeries in the United States, assuming that the domestic penetration rate is only increased by 0.02% per year, it is expected that the domestic full-femtosecond market will be close to 55 billion yuan in 2025, and only one year the start-up fee consumables fees paid to ZEISS are around tens of billions of yuan.
○ The price of a full femtosecond surgical device is in the tens of millions of dollars, and a royalty is paid to Zeiss for each surgery. It was disclosed that the cost of a full femtosecond boot code for doing a pair of eye surgeries is around $8,000, and the domestic myopic surgery holdings are close to 1 million units a year.
○ The market prospect is clear, Xianwei vision has attracted the attention of venture capital organizations. This year alone, there are more than 50 venture capital institutions to negotiate.
○ Xianwei Vision chose another way of playing differently from raising capital first and making a big market capitalization.
○ If we follow the logic of investors, the first problem for medical entrepreneurs is to obtain the type test report, and then enter the animal experiment, human experiment, to different stages, start the corresponding financing, and step by step to make the market value bigger.
character used in Taiwan as a substitute for a real name (like "X" in English) Xianwei Vision aims at the ultimate use of the product at the beginning, invites the medical team to participate in the research and development, and pushes forward the research and development for the real pain points. Although the initial research and development cycle is longer, the maturity of the product is relatively higher when the company obtains the national approval.
○ The large volume of full femtosecond surgery, high technical barriers, and strong consumer attributes make Xianwei Vision confident about the future. When social platforms and self-media anxiety pervade, Cao Feng reminds the team to focus on the development of the company with an eye on 5, 8 or even longer years, and not to hold the speculative thinking of betting on the windfall.
○ Fortunately, this choice of Xianwei Vision was favored by a group of investment institutions. A well-known venture capitalist said to Cao Feng, "Even if our cooperation doesn't work out, we still want to support you. We want Chinese companies to be the first to make breakthroughs in the field of full femtoseconds."
○ Xianwei Vision has obtained more than 10 patents, and the patents are still in the process of filing, basically realizing the localization of the core technology and key devices of full femtosecond laser refractive keratectomy equipment. in the last month of 2024, Xianwei Vision, which has obtained the financing, is pushing forward with the production of 7 sets of equipment, and the first batch of products will be put into use in 6 famous eye hospitals in China before the Spring Festival of next year.02Original innovation that moves forward the hard way○ Entrepreneurs who develop completely new technologies and open up new markets face greater challenges and risks than entrepreneurs who have a clear market.
○ In November this year, the city of Düsseldorf, Germany, hosted the usual MEDICA medical exhibition, which is a globally renowned medical equipment exhibition, attracting 5,800 exhibitors from 70 countries and 8,000 or 9,000 visitors to the exhibition. 5 winners of the MedX@Düsseldorf competition, jointly organized by MEDICA and the city of Düsseldorf, in the Global Innovative Enterprises Pavilion.(hereinafter referred to as "Norlin Bio") is one of them, and also the only Chinese company to receive the award.
○This is the first time for Norlin Bio to make a formal appearance at MEDICA as an exhibitor, showcasing its exclusive nitric oxide gas therapy and detection product ecosystem to global counterparts. Nitric oxide is widely present in the human body and is involved in many physiological processes. In recent years, the role played by this gas in the treatment of pulmonary arterial hypertension and respiratory failure in acute and severe diseases has been highly recognized by clinical experts at home and abroad.
In April 2022, Norring Bio's INOwill N200 received the registration certificate of Class III medical device from the State Drug Administration, becoming the first portable nitric oxide inhalation therapy device in China. therapeutic instrument, filling a gap in the domestic clinical market.
"Our products have entered more than 600 hospitals, and the most pleasing thing is that our products have played an obvious positive role in the rescue and treatment of a large number of patients with respiratory failure." Mao Wen, founder of Norling Bio, introduced that this year, the relevant medical institutions also released two clinical consensus to affirm the clinical effect of nitric oxide.
○ This year, Norling Bio got a new round of investment of over 100 million dollars, the problem of funding was eased, but Mao Wen did not get out of the innovator's dilemma.
○ Prior to a large amount of research and development, as well as the enlightenment of the market, both in terms of time and money, the investment is extremely considerable, the later competing companies can save the originator to open up the mountain of payment, in the market to compete in the way of pressure on the price of the first-mover to pose a challenge to the first-mover.
○ The Norlin Bio team was greatly encouraged by the wonderful appearance at the MEDICA exhibition in Dusseldorf, Germany. A large number of Chinese companies exhibiting at the show brought with them products that are still mainly low-priced and large-volume consumables, but there were also side-splitting domestic high-end manufacturing such as artificial hearts. "Our products help change the world's stereotypical impression of Chinese products and bring good luck for going overseas." Mao Wen said.
○ Original, is that there is no road ahead yet. No certainty of expectations, to vote or not to vote?
○ During the period of high market, active entrepreneurship and capital influx, venture capitalists are in a hurry to grab projects, and small venture capitalists follow the big venture capital organizations to chase projects, and they do not have a lot of time to have frequent interactions with the founding team, and it is rare to have the patience to have an in-depth understanding of the industry situation, so the investment decision is relatively hasty.The venture capital market is calm, venture capitalists have plenty of time to reason and discuss projects with startup teams and scientists over and over again. Looking at it from another perspective, the current environment is also conducive to investors examining the underlying personalities and real capabilities of startup teams.
○ TaiGen Technology (Nanjing) Co., Ltd. which was founded in 2020 by a returnee expert, met an investor who was willing to run with it for a long time in the difficult market development.In November this year, TaiGen completed a new round of financing led by High Tide Capital, which was followed by Shenzhen State Capital Fund.
○ The track chosen by TaiGen is the industrialized utilization of terahertz spectrum. Terahertz wave frequency is between microwave and infrared, shuttling between the boundary of the microscopic world and the macroscopic world, and is the last section of the electromagnetic spectrum that has not been fully utilized by mankind, and is regarded as one of the "ten technologies that will affect the future". China's "14th Five-Year" National Science and Technology Popularization Development Plan, "Opinions on Scientific and Technological Innovation to Support High-quality Development" and other important documents will be the development of terahertz technology into the national focus on the scope of development of technology, detection and imaging is the main direction of the development of terahertz spectrum resources for civil use.
TaiGen's standardized and modular sensor products with self-developed silicon-based terahertz chips are rapidly opening up application scenarios in a number of industrial inspection fields.
○ Company founder and chairman Zhao Yan introduced, the company's core technology with international leading edge, there are currently four other companies around the world and TaiGen has comparable R & D strength. The market application of terahertz spectrum resources, is the world's new track, used in which industries, how to meet customer demand, need to be debugged one by one enterprise, the initial market development is relatively slow.
○ After two or three years of exploration, TaiGen has developed market applications in about ten industries, including the photovoltaic industry, lithium batteries, sanitary products, and rubber tires.
○ "They have sentiments and a sense of mission." When Zhao Yan introduced the venture capital organization that invested in TaiGen in this way, it was surprising. Zhao Yan said.Some VCs understand technology and track the most cutting-edge advances in the industry; some VCs emphasize the underlying technology and empower the company's R&D; and some VCs give up the time frame and are willing to pay for the uncertainty of the future.03An industry change with no time to lose
Recently Nanjing Microbridge Inspection Technology Co., Ltd (hereinafter referred to as "Microbridge Inspection") announced the completion of Series A financing.
○ "We will increase our production capacity by 3~4 times next year." Lei Ming, founder, chairman and general manager of Microbridge Testing, introduced, "Our business this year has grown more than 5 times compared to last year, and next year, the business line will be expanded and enriched, and the business is expected to grow several times more compared to this year, and gradually enter into the stage of explosive growth in the market."
○ Microbridge Testing was established at the end of 2016 to provide a full set of solutions for micro- and nanoscale circuits, and its current product direction focuses on providing a full set of testing services for new display manufacturers in the pan-semiconductor field, including related consumables and equipment.As China's new display capacity accounted for the world's 70% or more, which cell phone flexible screen, tablet PC flexible screen, car flexible screen and other production are inseparable from such electrical properties of the test, such screen of high-end testing part of the previous were monopolized by Japan and South Korea, so with the rise of these products, its related testing market space and the demand for domestic substitution also grows rapidly.
The company's soaring in recent years comes from years of technical accumulation and the team's conscientiousness, from the production line construction and trial production in 2018 to the early 2020 model products sent to the sample client verification, and then after 3~4 years of positive market feedback, and the upstream and downstream industries of the friction, and ultimately have today been widely accepted and recognized by the market.
○ Microbridge Testing, which has solved the needs of the capital side, will now face new opportunities and challenges. The development of brand value, market share enhancement, domestic substitution continues to deepen, the incentives brought about by the employee performance dividends ...... For the company helmsman Lei Ming, the operating scale of the company is expanding, always adhering to the attitude of technological innovation, pragmatic struggle, will be a long-term goal down to the smallest detail, and gradually realized.
○This entrepreneur with more than 20 years of rich experience in entrepreneurship, but also in the financial crisis in 2008 lost a lot of money, a few difficult to turn around, but it is also this experience so that he will never give up. The belief and determination of young Chinese entrepreneurs who break through adversity will never be held hostage by negative emotions, and a positive attitude is always the first element of success.
○ For the three post-90s entrepreneurs, there is no such thing as negative emotions, there is only the opportunity to lose.
○ Founded in March 2024, Wenhai Coretide is located in the Super Incubator in Nanjing Economic and Technological Development Zone. The three founders, Wang Xie, Wang Xinze and Yin Guohua, are three PhDs from the Turing Award Lab at Tsinghua University, born in 1992, 1998 and 1999, respectively. Wang Xie has over ten years of experience in processor chip design and agile development EDA tool design, while the other two founders have more than five years of experience in AI algorithms. The three academics firmly believe that with the rapid development of AI technology, big model technology will definitely lead the industry change in the traditional chip design field.
