Invest in Industry's Prospective Trends, Says Well-Known Chinese Investor Neil Shen
Yicai Global
/SOURCE : Yicai
Invest in Industry's Prospective Trends, Says Well-Known Chinese Investor Neil Shen

(Yicai Global) Dec. 2 -- Despite there are BAT (Baidu, Alibaba and Tencent) over the past 10 years, we still see Meituan, an online ticket vendor, Didi, a car-hailing app, and Today's Headlines, a newsreader app, standing out. That is the exciting aspect of this industry, a well-known Chinese investor, Neil Shen, told Yicai Global.

Once you spot the prospective trends in an industry, you invest in different value chains around the industry. This is an essential capability for an investment company, said Neil Shen, founding and managing partner of Sequoia Capital China, in an interview with Yicai Global.

"Sequoia will always be the entrepreneur behind entrepreneurs," Shen said, adding, that Sequoia's investment directions are changing in line with the market and most importantly acting ahead of the market trends.

The start-up companies that attract substantial investment from Sequoia in recent years operate in the fields of corporate applications, big data and cloud computing, Shen said. In fact, Sequoia has been making preparations in talent and management areas since 2012, he pointed out.

"Do you have a different model, a different product, a different technology? Only when all these questions are well answered will you be able to receive investment from Sequoia Capital China," Shen explained.

Another investment principle of Sequoia Capital China is that it will not invest in two companies directly competing with each other during the same period, he said. "Sequoia positions itself as a small shareholder. When such companies are considering business cooperations or mergers, Sequoia plays an advisory or intermediary role, while all the final decisions are made by their CEOs," he added.

Sequoia Capital China managing partner Neil Shen is one of the most successful investors and is widely known in China. Over the past 11 years, Shen and Sequoia Capital China Fund have invested in more than 300 companies with distinctive technologies and innovative business models. Sequoia Capital China is behind many of China's most popular mobile internet players. Technological innovative companies such as SZ DJI Technology Co., Beijing Genomics Institute, 4Paradigm are backed by Sequoia Capital China.

This year Sequoia has four companies listed on domestic and overseas stock markets, including 51Talk and ZTO Express Inc. on NYSE and another two on China's A-share market. Sequoia China's current investment portfolio includes more than 40 listed companies.

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