Acquisitions, New Brand Entrepreneurship Courses, and More: 21 Developments and 4 Reflections | FreeS Fund Chalkboard · October
Do what's right, not what's easy.
FreeS Fund Bulletin — October Issue. Sharing the latest updates with our long-standing friends and partners:
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Club Factory raised $100 million in Series D funding, with FreeS Fund continuing to participate.
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FreeS Fund hosted the first edition of its offline event, "Let's Go Feng Together" (Yiqi Qu Feng Nao).
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FreeS Fund launched the "New Brand Entrepreneurship Course," with the aim of investing in more early-stage consumer brands.
We're also sharing good news from the FreeS family: Enterprise Services: iBackCheck raised tens of millions of RMB in Series B1 funding; Shangyue won the bid for FAW's enterprise marketplace project; Sinopec's "Yiquantong" project was formally signed, with Epec partnering with ZeKing Financial Services to leverage fintech in enhancing corporate e-procurement capabilities. Technology: Unity acquired ChilliConnect, an online game services company; Bluepha signed a strategic cooperation agreement with Sinochem International to jointly advance PHA industrialization. Consumer: Huasheng Auto Leasing reached partnerships with FAW ZhiXing International and Dongfeng Peugeot.
Entertainment: 2:10 Animation co-launched the "Yinhua Fund" and obtained management qualification for the Hubei Province Film and Television Industry Guidance Fund. Awards and Honors: Three Squirrels, Saturnbird Coffee, Jordan&Judy, Botaniera, and Particle Fever were named to the "China Top 100 Emerging Brands" list; at the 2019 8th China Innovation and Entrepreneurship Competition National Finals for Biomedicine, Changzhou Leao Medical won second prize and Singleron received the Outstanding Enterprise award; Jiuzhou Yunjian was named to the "2019 Top 30 Commercial Aerospace Companies"; Xinliangji and Shangyue were selected for the "2019 iResearch China Supply Chain Technology Innovators 50"; and Mafei won silver at the Guangxi Digital Agriculture Summit and Global Data Intelligence Competition. In the context of innovation, the world moves at a tremendous pace. We remain committed to doing what is right rather than what is easy, and look forward to continually encountering innovation and the extraordinary.
FreeS Fund News
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FreeS Fund Continues to Follow Club Factory's Series D Round
In recent years, as domestic internet dividends have gradually faded, overseas markets have become an increasing focus of attention. Club Factory, a leading e-commerce company focused on overseas markets, raised $100 million in Series D funding in early 2019, led by Qiming Venture Partners and several other domestic and international funds, with existing shareholders FreeS Fund and BAI making additional follow-on investments beyond their pro-rata rights.
In March 2016, Club Factory completed its Series A round of tens of millions of RMB, led by FreeS Fund.
Over the more than two years since its launch, Club Factory has consistently built a global company through technological capabilities and international vision. In the Indian market, where it has deep roots, the company has surpassed Snapdeal to stand alongside Amazon and Flipkart as one of India's top three e-commerce platforms. Its local seller business in India has grown more than 10x in the past six months. (For more details: FreeS Fund: Club Factory Raises $100M Series D Led by Qiming and Other Domestic and International Funds, FreeS Fund Continues to Follow)
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FreeS Fund Hosts Offline Event "Let's Go Feng Together"
(Swipe left or right for more surprises) Whether it's "FreeS Free Talk," which organizes knowledge and experience sharing on topics of common concern to founders, or "Feng Flavor Tavern," which centers on drinking, chatting, and speaking from the heart, or the annual CEO/LP gathering — we have consistently worked to deepen our connections with founders in the FreeS family and our good friends.
In late October, the autumn sun still retained some warmth, with red and golden leaves covering the hillsides. In the most beautiful season, our meeting came at just the right time. We organized an outing at Jinshanling Great Wall, known as the "most beautiful Great Wall." Together with nearly 30 founders and good friends, we climbed the Great Wall, admired the autumn foliage, discussed the present, and talked about the future — "stealing" a day of leisure from our busy lives.
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FreeS Fund Launches "New Brand Entrepreneurship Course"
With the Aim of Investing in More Early-Stage Consumer Brands
The world's largest single market + the world's largest manufacturing country + the internet (datafication) = China will create retail models beyond imagination. This is an era-defining opportunity unique to China. We look forward to walking alongside more brand entrepreneurs in the consumer space.
Focused on "new brand" entrepreneurship, our course maintains a founder's mindset throughout. We don't cover execution-level traffic acquisition tactics, and we reject rehashing tired talking points. It's not particularly utilitarian, but it is designed to solve problems: standing at the present moment, starting from zero, to build a consumer brand — what should you, as a founder, know? What can you do? What definitely won't work?
More importantly, it returns to the essence of brand building: behind creating an enduring brand, what remains constant, and how do you seize what changes?
For details, see "Listen to Li Feng and Diao Ye on the Logic and Future of New Brands | 'New Brand Entrepreneurship Course' Enrollment". Welcome to apply.
FreeS Perspectives
▍Li Feng: What Happens When the World's Largest Producer Meets the World's Largest Consumer?
When the world's largest producer meets the world's largest consumer, massive consumer demand gets rapidly translated into supply-chain language by people with sharp consumer insights, then quickly fed back through the supply chain as products that satisfy that demand. This is a uniquely Chinese opportunity. The brands of the future will be "translators" who can convert demand into supply-chain language, not "producers" who merely own production lines. (Source: Liu Run's interview with Li Feng: China's Economy Is Bottoming Out and Full of Opportunities)
▍Li Feng: Understanding Traffic Requires Three Things
First: the shift in how users allocate their time. Second: a simple pattern visible across all industries — when user time shifts, the media format changes, but typically, user time migrates fastest when new media is hardest to monetize, because it's still in a growth phase. Third: when a certain type of traffic hits a bottleneck, there's always a category of goods and services best suited to that medium's distribution that haven't been well-served before.
Traffic persists, but user demographics change, time allocation changes with them, and monetization changes accordingly. In the long run, those who truly benefit are the ones who genuinely deliver great products and services — they will, sooner or later, take center stage in their industries. (Full coverage: [Jianshi] A Brief History of Internet Traffic: The Answers to Big Entrepreneurial and Profit Opportunities Lie in the Past Decade)
▍Huang Hai: Whether It's Cross-Border E-Commerce or Domestic Channels, the Fundamental Rules of Retail Apply
Four years ago, we mostly understood cross-border e-commerce through the lens of China's unique advantages. Four years later, the more consumer retail deals we've seen and the deeper we've thought, the clearer it becomes that cross-border e-commerce is simply about meeting overseas consumer demand. So evaluating a cross-border e-commerce investment is fundamentally the same as evaluating any retail project. We've also become more certain that whether it's cross-border e-commerce, domestic e-commerce channels, or premium consumer brands, all must ultimately obey the same laws of retail.
At the core of retail is understanding both sides of supply and demand:
On the consumer side: having strong insight into what users actually need.
On the supply chain side: being able to deliver more efficient solutions that provide quality goods at lower prices to consumers. (Full coverage: [FreeS Fund] Four Years On, Revisiting Cross-Border E-Commerce)
FreeS Fund Portfolio Updates
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Enterprise Services | "iBeidiao" Raises Tens of Millions of RMB in Series B1
Intelligent employee background check service provider "iBeidiao" has completed a Series B1 round of tens of millions of RMB, with Future Capital as the sole investor and Yuze Capital continuing to serve as financial advisor. iBeidiao previously received angel investment from FreeS Fund in 2015.
iBeidiao founder and CEO Li Jie told 36Kr that following this round, the company will further expand its market presence. Beyond Hangzhou and Beijing, it will add direct sales teams in Shenzhen, Shanghai, and Guangzhou while building more channel partnerships. On the product side, beyond further improving standardization and intelligence, the company will explore more "extended background check" scenarios such as student admissions, rental housing, and matchmaking. (Full coverage: [iBeidiao] "iBeidiao" Raises Tens of Millions of RMB in Series B1, Future Capital Sole Investor)
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Enterprise Services | Sunyur Wins FAW Enterprise Mall Project
On October 30, China's first domestic automaker brand — China FAW Corporation (hereinafter "FAW") announced that Sunyur had won the bid for its enterprise procurement mall project. Through Sunyur, FAW will build a future-facing intelligent procurement platform that more efficiently connects suppliers and procurement users, achieving full digitalization from procurement to payment. (Full coverage: Huasheng Haoche and FAW Zhixing International Reach Cooperation to Jointly Practice Financial Leasing Services)
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Enterprise Services | Sinopec "Yiquantong" Project Officially Signed; Epec Partners with Zejin Financial Services to Enhance Enterprise E-Procurement Through Fintech
On October 15, 2019, Epec Company and Epec Commercial Factoring, both under Sinopec, held a signing ceremony in Beijing with Zejin Financial Services for Sinopec's electronic creditor's rights circulation system "Yiquantong."
Regarding Epec's choice to partner with Zejin Financial Services, Wang Zhigang, chief e-commerce expert at Sinopec's Materials and Equipment Department (International Business Company), stated that Zejin Financial Services is a nationally leading fintech service company in the supply chain finance space. From collaboration and integration perspectives, Zejin demonstrated considerable professionalism in product solution design, understanding of Epec's business needs, resolution of major issues, and system development progress. (Full coverage: [Zejin Financial Services] Sinopec "Yiquantong" Project Officially Signed, Epec Partners with Zejin Financial Services to Enhance Enterprise E-Procurement Through Fintech)
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Technology | Unity Acquires Online Game Management Service ChilliConnect
Unity has acquired online game management service company ChilliConnect. With ChilliConnect joining the Unity ecosystem, Unity will provide developers with more options.
ChilliConnect provides cloud-based game services, enabling developers to perform large-scale backend operations and add online game features without setting up separate servers. ChilliConnect also offers a full-stack toolkit including LiveOps capabilities and real-time analytics, allowing developers to build and operate online games. (Full coverage: [Unity Official] Unity Acquires ChilliConnect)
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Technology | Bluepha and Sinochem International Sign Strategic Partnership to Jointly Advance PHA Industrialization
On October 28, synthetic biology startup Bluepha and state-owned chemical enterprise Sinochem International (600500.SH) signed a strategic partnership agreement at Tsinghua University. The two parties will collaborate to advance the industrialization of PHA (polyhydroxyalkanoates), a bio-based biodegradable material.
Under the agreement, Sinochem International and Bluepha will pursue equity cooperation, with plans to jointly invest in building the world's largest PHA production facility, leveraging both parties' technology and sales network resources to drive large-scale PHA adoption in China. (Full coverage: [Bluepha] Bluepha and Sinochem International Sign Strategic Partnership to Jointly Advance PHA Industrialization)
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Consumer | Huasheng Haoche Reaches Partnership with FAW Zhixing International and Dongfeng Peugeot
Huasheng Haoche, a pioneering brand in China's automotive new retail sector, is gaining increasing favor from major automakers.
Recently, Huasheng Haoche, a leading automotive new retail chain brand, reached an in-depth partnership with FAW Zhixing International Leasing Co., Ltd. The two parties will collaborate comprehensively in direct leasing product innovation, shared access to lower-tier distribution channels, and mobility services, leveraging Huasheng Haoche's existing network of 500 offline directly-operated stores. Together they will deliver financial leasing services to customers, further deepening the direct leasing business model in China's auto sector. (Full coverage: [Huasheng Haoche] Huasheng Haoche Reaches Partnership with FAW Zhixing International to Jointly Advance Financial Leasing Services)
Additionally, on October 29, at the Wuhan Dongfeng Peugeot-Citroën plant, Huasheng Haoche and Dongfeng Peugeot announced a strategic partnership. The first batch of 1,400 new 308 sedans has been delivered, and the model will be fully integrated into Huasheng Haoche's online and offline channels, offering consumers "zero-pressure, low down payment" purchase options. (Full coverage: [Huasheng Haoche] Huasheng Haoche Reaches Strategic Partnership with Dongfeng Peugeot, First Batch of 1,400 308 Sedans Delivered)
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Entertainment | 2:10 Animation Co-Launches "Yinhua Fund," Secures Management Rights for Hubei Provincial Film Industry Guidance Fund
On October 9, Hubei Yinhua Film Industry Investment Fund Management Co., Ltd. — co-founded by 2:10 Animation, Hubei Changjiang Film Group, and Central China National Copyright Trading Center — obtained the management rights for the Hubei Provincial Film Industry Guidance Fund.
The fund will operate under government guidance with market-driven mechanisms, effectively leveraging social capital through direct investment and sub-fund establishment to address funding bottlenecks in Hubei's film industry development and inject fresh vitality into the growth of Chinese cinema. (Full coverage: [2:10 Animation] 2:10 Animation Co-Launches "Yinhua Fund," Secures Management Rights for "Hubei Provincial Film Industry Guidance Fund")
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FreeS Fund Portfolio Awards & Recognition
▍Three Squirrels, Saturnbird, Jordan&Judy, Botaniera, and Particle Fever Named to "China's Top 100 New Consumer Brands"
On October 1, EqualOcean Intelligence released an in-depth report unveiling the "China's Top 100 New Consumer Brands" list, with Three Squirrels, Saturnbird, Jordan&Judy, Botaniera, and Particle Fever all making the cut. These 100 brands are all D2C brands that have received capital market recognition, the vast majority of them "new brands" founded after 2013. (Full coverage: [EqualOcean.com] China's New Consumer Brand Report 2019 & Top 100 Brand List)
▍Changzhou Leo Medical Wins Second Prize, Singleron Receives Excellence Award at 8th China Innovation and Entrepreneurship Competition National Finals (Biomedical Sector)
During the biomedical sector national finals of the 8th China Innovation and Entrepreneurship Competition held October 14–18, over 200 companies from 37 regional divisions nationwide advanced to the national stage with technology innovation projects. Dr. Zhang Zhongmin of Changzhou Leo Medical Technology Co., Ltd. won second prize in the growth enterprise group finals with the "peripheral vascular interventional medical devices" project.
The national competition phase awards one first, one second, and one third prize for the startup enterprise group, and one first prize, two second prizes, and three third prizes for the growth enterprise group.
Singleron's "massive single-cell sequencing microfluidic platform" received unanimous recognition from the organizing committee and live audience, successfully breaking into the top ten and earning the Excellence Award. (Full coverage: [Leo Medical] Celebrating Changzhou Leo Medical Technology Co., Ltd. Winning Second Prize at 8th China Innovation and Entrepreneurship Competition Biomedical Sector National Finals; [Singleron] Momentum Builds! Singleron Wins Excellence Award at National Innovation and Entrepreneurship Competition)
▍Jiuzhou Yunjian Named to "2019 Top 30 Commercial Aerospace Companies"
The 2019 Xi'an Global Hard & Core Technology Innovation Conference, co-hosted by the Ministry of Science and Technology, Shaanxi Provincial Department of Science and Technology, and the Xi'an Municipal Party Committee and Government, was held in Xi'an, Shaanxi from October 29 to 31. The conference aimed to demonstrate the mission of hard technology, gather hard technology strength, showcase hard technology achievements, promote hard technology exchange, and build a Belt and Road hard technology cooperation platform. As an important component of the conference, the 2nd Silk Road Commercial Aerospace Conference was also held in Shaanxi on October 31. Jiuzhou Yunjian was honored with the "2019 Top 30 Commercial Aerospace Companies" award at this conference. (Full coverage: [Jiuzhou Yunjian] Hard Tech! Jiuzhou Yunjian Receives "2019 Top 30 Commercial Aerospace Companies" Honor)
▍Shangyue and Xinliangji Named to "2019 iFenxi · China Supply Chain Technology Innovators 50"
On October 18, the "2019 iFenxi · China Technology Innovation Conference" hosted by iFenxi was held in Beijing. At the supply chain technology forum, iFenxi co-founder and chief analyst Zhang Yang released the "China Supply Chain Technology Report" and unveiled the "2019 iFenxi · China Supply Chain Technology Innovators 50" on site.
This list was compiled based on iFenxi's three years of accumulated research across various industries and months of concentrated analysis of the supply chain sector. Shangyue and Xinliangji were both selected. (Full coverage: [iFenxi] 2019 iFenxi · China Technology Innovation Conference Held in Beijing, Revealing Outstanding Technology Innovation Forces in Four Sectors)
▍MaiFei Wins Silver Award at Guangxi Digital Agriculture Summit & Global Data Intelligence Competition
On October 29, 2019, the "Technology for Agriculture" track finals of the Guangxi Digital Agriculture Summit & Global Data Intelligence Competition (2019) were held in Nanning. Dr. Liu Long, co-founder and CTO of MaiFei Technology, attended the finals. As a representative of China's leading agricultural technology enterprises, MaiFei emerged from over 700 participating teams to reach the finals, where it won the silver award in the "Technology for Agriculture" track. (Full coverage: [MaiFei Technology] MaiFei Wins Silver Award at Guangxi Digital Agriculture Summit & Global Data Intelligence Competition)
Perspectives from the FreeS Fund Family
▍Lin Sheng of Chicecream: We Don't Define Ourselves — Whatever Consumers See Us As, That's What We Are
Competitive strategy must first identify competitive commonalities before pursuing differentiation. Differentiation without mainstream commonality lacks long-term value. Today, I advocate for flexible brand strategy.
Consumers present different faces in different scenarios. What a brand needs isn't a rigid persona — it's better off being spherical. Any facet of that sphere can represent deliciousness, or high quality, or prestige... In an era where a single consumer can be tagged with over a thousand labels, every additional label a brand carries means capturing one more attribute-defined audience. (Full coverage: "Why Is 'Viral Sensation' Chicecream Trying to De-Viralize Itself?")
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