Fund Background Information

Enlightenment Capital is co-founded by one of China’s pinnacle industrial capitals and one of China’s most experienced venture capital institutions. We aim to seek out commercially successful entrepreneurs who focus on Industry 4.0 and Internet of Things, providing those with funding, resources and experiences; nurturing their core-competitive strength and resources to become commercial organizations which satisfy their clients, fulfill their employee commitments, provide returns to shareholders and serve the general public.

Investment Philosophy

Technological innovation and structural reform have fundamentally changed the commercial arena, driving nascent social demands; reshaping preceding supply and demand functionality; revolutionizing the existing pricing mechanism; reforming general consensus, and all together fostering new business opportunities. The key of turning business opportunities into commercial reality lies in the hands of entrepreneurs, and we bank on the persons above all else given the traceable credentials of those entrepreneurs who have persevered in China’s econ-political landscape. Venture capitals’ profit centers are deeply rooted in the “massive markets, strong execution teams, and sound products”, together evaluating company organic growth and enhancing equity values. The gist of investment research is finding out how to increase end users’ value add and recurring purchases; epicenter of value chain; entrepreneurs core competences and personal charisma; and companies growth stage and key drivers. Right timing is also paramount in further enhancing returns, and thus we are vigilant on factors such as capital efficiency, business model “compound effects”, long-term growth and short-term volatility.

Investment Ideas

Internet revolution, financial reform and industrial upgrade have completely revamped China’s economy, society and ideology for the past 20 years. During this period, we have seen the rise and fall of countless entrepreneurs, some thrived and other didn’t, and the government and the general public gradually understand the key role of entrepreneurship in economic development and industry growth, and venture capital, a form of business model, is also thriving in China’s capital ecosystem. Venture capital core value lies in providing funding and bearing the risks to invest highly uncertain nascent industries, and for the past 20 years, several industries, including TMT, have provided lucrative returns to venture capital funds.

At today’s inflection point, modern industrial and agricultural production and automation capabilities are raising drastically. Information technology generates, transmits and applies data, and the sheer velocity and volume have increased exponentially. However, there are bottlenecks to innovative trend, reduction in marginal return, pressuring profitability, regardless in cyber or physical world. Digitalization should go beyond fulfilling the demands of information and shift the focus by switching the channels and applied derivations to amass big data together with physical world, fulfilling the demand of highly virtual merchandises or services. By the same token, physical applications that merely focus on cost reduction can also no longer accomplish end users’ demands; it should fuse all sources of data and connects that data to the web, ascertain higher overall customer experiences.

Needless to say, we are currently at the early stage of the evolution between cyber digital space and physical space. The first breakthrough will come from subsectors that already have well positioned digital know-how, which is generally referred as Industry 4.0 or Industrial Internet, and we believe that the logic path will entail first physical infrastructure, then cyber frameworks, and finally data analytics/application. We are looking at early/mid stage smart hardware projects, connecting data collection and big data processes systems ie sensors, transmitters, appliances, as point of entry, and gradually transform investments from advanced technologies and products driven to platform driven. Advanced products entail physicals products, telecommunications, and algorithms, and platforms entail big data, services and promotion platforms.

Investment Strategy

With offices in Beijing, Shanghai and Shenzhen, we are investing in Angle Round and Series A, Industry 4.0 or Industrial Internet related, small & medium enterprises, with each investment between RMB 5mill to RMB 10mill, specializing in innovation in new sensitive synthetic materials and sensor applications, power and transmission systems, motion control, industrial telecommunications, enterprise information technology and industrial ecommerce, industrial integrated circuits and etc. We aim for long-term value creation partnership with entrepreneurs instead of short-term returns.