FreeS Fund II Completes First Close, New Launches, Awards... 13 Updates and 4 Insights | FreeS Fund Blackboard · September
Stay grounded, keep pushing forward.
On the first workday of October, we share FreeS Fund's September updates with friends who follow and support us through our "Blackboard" column:
- FreeS Fund Fund II completed its first closing and began investing;
- FreeS Fund was named to the China FOF JinHui Awards list, ranking in the "Top 50 VC Funds by Returns in China 2018";
- FreeS Fund was recognized as one of the "Top 30 Emerging Investment Institutions" in the 2018 Yicai Investment and Financing Value Rankings.
We also have good news from the FreeS Fund family:
- Deep Tech: AI empowers oral healthcare — DeepCare launches an AI quality control system for dental imaging; DataPipeline joins the OpenMessaging community under the Linux Foundation.
- Consumer: Three Squirrels launches new products including "Second Brain" nut beverage; integrating with Ant's open ecosystem, Tingjiandan appears at the Yunqi Conference.
- Awards: Club Factory ranks among Facebook's 2018 Top 50 Chinese Brands Going Global; the first "China Integrity Innovation Award" results are announced at Tsinghua University, with Three Squirrels making the list; Huasheng Haoche wins Tmall Auto's "2017 New Finance Innovation Award"; the top three of the 2018 Cleantech Innovation and Entrepreneurship Competition are announced, with Maihai Environmental ranking second; the 2018 Top 10 Fintech Innovation Cases list is revealed, with IceKredit making the cut; Jiuzhou Yunjian receives Zhongguancun High-Tech Enterprise certification.
As a young fund, FreeS Fund will continue to stay grounded, forge ahead, and diligently explore the unknown — looking forward to constantly encountering innovation and the extraordinary.
FreeS Fund News
1
FreeS Fund Fund II Completes First Closing and Begins Investing
In September 2018, FreeS Fund's second RMB fund completed its first closing and began investing. The new fund targets innovative startups in both China and the U.S. that can create long-term value, covering consumer and deep tech sectors.
Three years since its founding, FreeS Fund's first fund has invested in over 100 companies across consumer and deep tech, with portfolio companies including Three Squirrels, Uber Global, Club Factory, QingTao Energy, Shunshun Liuxue, 360 Finance, Huasheng Haoche, NextVPU, Tingjiandan, Qingqing Jiajiao, Onion Math, Unity, SoundAI, XtalPi, Jiuzhou Yunjian, Novita, Jietelan, and more.
2
FreeS Fund Named to JinHui Awards "Top 50 VC Funds by Returns in China 2018"
On September 21, 2018, at the awards dinner of the China FOF Annual Gala, the organizing committee released the JinHui Awards list, scored by more than 80 working coordination mechanism members of the China FOF Alliance. FreeS Fund was named to the "Top 50 VC Funds by Returns in China 2018." (See full coverage: [China FOF Research Center] Breaking: Full JinHui Awards China FOF Annual Gala List Released)
3
FreeS Fund Recognized as "Top 30 Emerging Investment Institution" in 2018 Yicai Investment and Financing Value Rankings
In 2018, the market environment for private equity and venture capital underwent profound changes, ushering in a major capital transformation that prompted deep reflection on the industry. Yicai's Lujiazui magazine collaborated with multiple third-party institutions to launch the 2018 Yicai Investment and Financing Value Rankings, combining industry research and value discovery capabilities, post-investment services and resource aggregation capabilities, with environmental (E), social (S), and governance (G) factors as important reference points, plus voting results. FreeS Fund was recognized as one of the "Top 30 Emerging Investment Institutions." (See full coverage: [Lujiazui Magazine] The Company That Invests Money Matters, But What's More Important Is Investing in Good Companies)
Perspectives from FreeS Fund
▍Feng Li: Companies with Good Intentions Tend to Get Big
A brand is ultimately a core piece of recognition for consumers. For the vast majority of products, consumers lack both professional judgment and the time cost to develop it — the core purpose of a brand is to reduce these two costs. But brand formation is very special: it's fundamentally a process of communicating values. If consumers feel those values strongly, they're willing to pay a higher premium and show greater loyalty; if the feeling is weak, the premium and loyalty are both lower.
Humanity and society need to move forward, and will ultimately make holistic choices — choices that benefit the majority. The process of a company getting bigger is the process of being gradually selected by the market. I'm increasingly convinced that companies with good intentions tend to get big. (See full coverage: [Waterdrop Product Evolution Camp] No Matter How Vast the Business Empire, It Can't Surpass Love and Compassion)
FreeS Fund Family Updates
1
Consumer | Three Squirrels Launches "Second Brain" Nut Beverage and Other New Products
At the 917 China Health Week event, "Squirrel Dad" called for innovative competition in the industry to create new momentum for Chinese enterprise development, and launched two new products: "Second Brain" nut beverage and "Small Bottle Fruit" nut product. Both new products start from "nuts" themselves, crossing boundaries and integrating — with greater attention to health, organic, and green qualities, while also being more fun. As Squirrel Dad put it, the product itself needs to contain two kinds of "wei": flavor and fun. (See full coverage: [Three Squirrels Official WeChat] Squirrel Dad Launches 2 New Products Including "Second Brain" Nut Beverage, Calls for Innovative Competition in the Industry)
2
Consumer | Integrating with Ant's Open Ecosystem, Tingjiandan Appears at Yunqi Conference
On September 19, the Yunqi Conference kicked off in Hangzhou. In this year's Ant exhibition hall at the conference, smart mobility was a major highlight. As an important partner in Ant Group's "Digital Mobility" ecosystem for frictionless parking, Tingjiandan exhibited at the show. During the conference, Ant Group CEO Jing Xiandong and the Yunqi Conference leadership team visited Tingjiandan's frictionless payment parking booth and experienced its intelligent billing and frictionless payment functions. Smart parking scenarios are the best use case for driving frictionless payment adoption, while frictionless payment functionality also elevates Tingjiandan's smart parking experience, truly achieving digital intelligence across all aspects of the smart parking scenario. (See full coverage: [Hot Perspectives] Yunqi Conference: Tingjiandan + Alipay Usher in the Era of Smart Parking Frictionless Payment)
3
Deep Tech | DeepCare Launches AI Quality Control System for Dental Imaging
DeepCare, a FreeS Fund angel-round portfolio company, collaborated with Beijing Stomatological Hospital to develop the PrimeDental™ system — the world's first AI quality control system for dental imaging.
The system addresses the pain point of lacking quality control in dental imaging, using SEFP-Net and T-Net technologies to identify tooth regions and edges, achieving instance-level segmentation of teeth. The system's classification accuracy reaches 96.5%, assisting doctors in obtaining qualified dental images and ultimately reducing the proportion of quality issues in dental X-rays at primary medical institutions from the current 30% to 10%. (See full coverage: [DeepCare] AI Empowers Oral Healthcare, DeepCare Writes a New Chapter)
4
Deep Tech | DataPipeline Joins OpenMessaging Community Under Linux Foundation
Recently, "iPaaS+AI" one-stop big data integration service provider DataPipeline announced its joining of the OpenMessaging open-source community under the Linux Foundation. It will work with other OpenMessaging community members including Alibaba, Yahoo, DiDi, and Streamlio to jointly promote the application and innovation of big data technology in international markets and reduce enterprise investment costs. DataPipeline previously received millions in angel-round funding from FreeS Fund and follow-on investment in its Series A. (See full coverage: [DataPipeline] DataPipeline Joins OpenMessaging Community Under Linux Foundation, Building New Open Standards for Distributed Messaging)
5
Awards News from FreeS Fund Family
▍Club Factory Ranks in Facebook's 2018 Top 50 Chinese Brands Going Global
On September 12, Facebook held the 2018 Facebook Overseas Marketing Summit in Shanghai and released the 2018 Top 50 Chinese Brands Going Global list, with Club Factory ranking in the Top 10 E-commerce Brands Going Global.
The list was produced by Big Four firm KPMG. From July to August 2018, KPMG conducted research on four key verticals for Chinese companies going global — consumer goods, e-commerce, mobile apps, and gaming — surveying 2,400 consumers across 8 countries with varying gender, age, education levels, and income levels, combined with Facebook performance metrics, to select the Top 50 Chinese Brands Going Global. (See full coverage: [Baijing Chuhai] Facebook Just Released the 2018 Top 50 Chinese Brands Going Global — Which Companies Made the List?)
▍First "China Integrity Innovation Award" Results Announced at Tsinghua University, Three Squirrels Makes the List
On September 15, the results of the first "China Integrity Innovation Award" were announced at Tsinghua University's School of Public Policy and Management. Three Squirrels' "Comprehensive Innovation in Corporate Integrity System in the Internet Plus Era" and other integrity innovation projects received the first "China Integrity Innovation Award" nomination. (See full coverage: [Tsinghua University Center for Integrity and Governance] First "China Integrity Innovation Award" Results Announced at Tsinghua University)
▍Huasheng Haoche Wins Tmall Auto "2017 New Finance Innovation Award"
Recently, Tmall Auto held its 2018 Annual Tmall Auto Double 11 Merchant Conference in Hangzhou with the theme "Playing with New Retail, Leading New Life." The conference attracted around 100 automotive OEMs and new retail enterprises to discuss the e-commerce trend in automotive consumption.
Additionally, multiple major awards were presented at the conference. Huasheng Haoche's Tmall flagship store, with its strong user experience and reputation, won the heavyweight award of the event — the 2017 New Finance Innovation Award. (See full coverage: [Hanwang] Using Offline Channels to Support Automotive E-commerce, Huasheng Haoche Wins Tmall Auto "2017 New Finance Innovation Award")
▍Top Three of 2018 Cleantech Innovation and Entrepreneurship Competition Announced, Maihai Environmental Ranks Second
On September 21, at the 2018 Cleantech Challenge finals co-hosted by the Asian Development Bank and TusStar, Maihai Environmental's (MicroHAOPs) wastewater treatment project stood out from more than 130 projects to win second prize.
Six months earlier, in March 2018, Maihai Environmental completed its China company registration, taking a key step in bringing its technology back to China. Since establishing its China company, Maihai Environmental has completed its application for Suzhou Industrial Park leading talent status and successfully completed small-scale technical validation in wastewater upgrade and retrofit projects in Beijing, Jiangsu, Fujian, and other locations. (See full coverage: [TusStar] Top Three of 2018 Cleantech Innovation and Entrepreneurship Competition Announced, 130 Projects Participated in Total)
▍2018 Top 10 Fintech Innovation Cases List Revealed, IceKredit Makes the Cut
On September 2, the 3rd Global Fintech (Beijing) Summit, co-hosted by the China Finance 40 Forum and Financial City, was held in Beijing. The summit revealed the top ten cases of the "3rd Fintech Innovation Case Selection," with IceKredit selected.
IceKredit uses model algorithms and big data decision systems to provide intelligent risk control services for financing businesses targeting small and micro enterprises and long-tail populations, significantly improving financial institutions' operational efficiency. (See full coverage: [Sina Finance] 2018 Top 10 Fintech Innovation Cases List Revealed, China Minsheng Bank and Others Selected)
▍Jiuzhou Yunjian Receives Zhongguancun High-Tech Enterprise Certification
Recently, following review by the Beijing Zhongguancun High-Tech Enterprise Association, Jiuzhou Yunjian received the "Zhongguancun High-Tech Enterprise" qualification certificate issued by the Zhongguancun Science Park Management Committee.
Since its founding in 2017, Jiuzhou Yunjian has adhered to its mission of making it easier for customers to access space, embracing a corporate culture of "passion, innovation, professionalism, and efficiency," focusing on core technologies for liquid launch vehicle propulsion systems. The company is currently dedicated to developing liquid oxygen-methane propulsion system products and rocket recovery and reuse technologies. (See full coverage: [Jiuzhou Yunjian] Jiuzhou Yunjian (Beijing) Space Technology Co., Ltd. Receives Zhongguancun High-Tech Enterprise Certification)
Perspectives from FreeS Fund Family
▍Fang Nan, Founder of Singleron: If Something Doesn't Require Me to Stand on Tiptoes to Reach, I'm Not Very Interested in Doing It
I particularly enjoy challenging myself — if something doesn't require me to stand on tiptoes to reach, I'm not very interested in doing it. Whether at a German company or a Chinese company, I could have worked safely until retirement, but I didn't want that security. From going to the U.S. for graduate school after university, then working in Germany, and finally returning to China to work and start a business, I've constantly been seeking new challenges. Emerging single-cell analysis is, for me, just such a field full of challenges and opportunities. (See full coverage: [New Jiangbei] Four Months, Tens of Millions in Angel Funding! Returnee PhD Fang Nan Builds "Biological Kingdom" in Jiangbei)
▍Zou Wenbiao, Zhoupu Data: Compared to Rebuilding, Traditional Channels Need Technology Empowerment More
Whenever a new field emerges, there are usually two camps: the rebuilders, who believe they can redo the industry themselves, and the technology enablers, who believe the industry can be optimized through empowerment.
The FMCG B2B industry is no exception. In China, traditional channels with a 10 trillion RMB volume won't disappear, but we must acknowledge that this is an inefficient market still operating and surviving in very traditional ways, with obvious pain points. Therefore, compared to rebuilding, traditional channels need technology empowerment more to achieve industry optimization. (See full coverage: [Lieyunwang] Breaking the FMCG B2B Deadlock: Rather Than "Rebuilding" the Distribution System, Better to Use "Technology Empowerment")
▍Li Jian, CEO of Xinliangji: Entrepreneurship Is Essentially Always a Tragedy
Entrepreneurship is a process of pain and joy, like eating chili peppers — it gets addictive. However, entrepreneurship is essentially always a tragedy. Businesses follow the laws of life; they are inherently a process toward death. What entrepreneurs need to strive for is to make the company die a little slower, focusing on polishing the beauty of the process. Like a person taking steps forward, imbalance is eternal while balance is momentary — businesses also have no eternal model, and must always be prepared to "change." (See full coverage: [iHeima] Exclusive Interview with Xinliangji CEO Li Jian: Entrepreneurship Is Essentially a Tragedy)
9 Gains and 4 Insights in Spring | FreeS Fund Blackboard · March
