The 32nd Annual AVCJ Private Equity & Venture Forum - Investment Summit
December 23, 2019

Patrick Cheung, our founding and managing partner attended the Forum as a guest speaker in panel discussion on global outlook and key investment trend. We have highlighted the keynote of his speech below.

• China has huge market potential with the largest population in the world, especially in consumer sector. Founder of Focus Media, Jason Jiang is a co-founding shareholder of ZWC. Patrick as founding and managing partner comes from media and advertisement background. ZWC focuses on consumer sector especially technology enabled consumer businesses, as well as enterprise software. Focus Media being the largest offline media company in China, is a good marketing channel for consumer and enterprise software companies.

• Huge cross border opportunities in Southeast Asia. We see more Chinese entrepreneurs launch startup companies in Southeast Asia. One example is Sea Limited (NYSE: SE), Southeast Asia’s leading consumer internet company with US$26 billion market cap. ZWC assisted Chinese entrepreneurs to enter Southeast Asia market with their technical know-how. ZWC’s Southeast Asia portfolio includes Wiz.AI, Target Media, Ritase, etc. We found Chinese capital are welcomed by startups in Southeast Asia.

• Tencent being strategic investors invested in over 900 companies in the last couple of years. Tencent with their strategic focus will not create headed competition with other funds on all sectors. ZWC being a pure financial investor enjoys the benefit of working with strategic investors. Strategic partners like Tencent provided long term capital and potential M&A exit opportunities which are good for financial investor.

• US-China trade war has led to slower export growth. As we all know, China is a policy driven country. We expect the Chinese government to further encourage domestic consumption to maintain economic growth. In addition, many top Chinese tech talents are likely to return from overseas. China will take this opportunity to accelerate the development of deep-technology industry.

• We see opportunities in China’s consumer sector, Pinduoduo is an e-commerce platform in China with over US$50 billion market cap, it manages to become the 3rd largest e-commerce platform in China in the presence of Alibaba. In addition, China being the biggest manufacturing country with billions of machines have a huge demand for building out the Industrial Internet of Things. Company like Rootcloud will enjoy opportunities.

• We see China early growth and China+ opportunities in 2019, and we expect to see China’s domestic growth opportunities in 2020.