Gaorong Bulletin · September | Gaorong Ventures Ranks Top 3 in 2021 VC Fund Returns, Milestones for Cross-Border Services, New Drug R&D, and New Brands

About Rong Bao: Rong Bao is a monthly digest that curates noteworthy updates and insights from Gaorong Ventures and its portfolio companies. Each issue shares just ten items — including key funding news and milestones, but also emerging trends, new creations, and fresh perspectives. True to Gaorong's vision of "creating" a better life through innovation, we believe every step forward opens infinite possibilities.

Recognition · Gaorong Ventures Ranks Top 3 in 2021 VC Fund Returns

In September, the China FOF Research Center released its mid-year 2021 rankings, naming Gaorong Ventures among the top three VC funds by returns. Chang Chen, founding partner at Gaorong Ventures, ranked in the top five of direct-investment fund investors by returns.

36Kr published its fourth annual list of China's most founder-friendly investors and investment firms, with Gaorong Ventures placing in the top ten founder-friendly VC firms of 2021. Chang Chen, Gao Xiang, and Yue Bin of Gaorong Ventures were named to the top 100 founder-friendly investors, while partner Rui Han made 36Kr's "36 Under 36" list of remarkable young investors.

ChinaVenture's 2020 investor rankings recognized Chang Chen as one of China's top three venture capitalists and a top ten internet sector investor. Gao Xiang ranked in the top 30, Yue Bin in the top 50, and Rui Han in the top 10 for new consumer investments and top 100 overall.

Gaorong Ventures also recently appeared in Cyzone's top ten most admired VC firms of 2021, and in 21st Century Business Herald's top 20 healthcare-focused VC and PE firms for 2020–2021.

Perspectives · Consumer Investing Will Return to Naturally Occurring Demand Categories; Healthcare Innovation Continues, Grounded in Science and Running Through Clinical and Industrial Applications

On September 23–24, 36Kr hosted "The Transcendent Era — 2021 China Investors Future Summit" in Shanghai, where Gaorong Ventures partners Rui Han and Yang Kun shared their views on consumer and healthcare investing.

Rui Han noted that traditional categorization in consumer industries is quickly becoming obsolete. "Today it's hard to say whether a company is a brand or a channel, a product or a service — everything is converging. Industrially defined categories may also lose relevance."

He argued that we are witnessing a shift from limited to unlimited supply, with definitional power moving from producers to consumers. "Going forward, we'll return more to classification based on naturally expressed consumer demand." "This natural expression of demand can be roughly divided into scenarios and functions. Perfect Diary and Dingdong Maicai are more scenario-based labels; Genki Forest is more function-based."

Rui Han also discussed what founders Gaorong hopes to back. "If we think of entrepreneurship as climbing a mountain, we want founders who can see a different peak through the clouds, or who see the same peak but have distinctive capabilities — that's one measure. Another is whether they're consistently doing important but non-urgent work, and whether they can resist temptation. But setting aside all measures, in simple terms, we especially want to see a sense of mission and youthful spirit. Mission is what pulls you toward your goal; youthful spirit is getting back up again and again after setbacks while still holding onto your original intention."

At the healthcare investment forum, Yang Kun emphasized that healthcare is a key focus for Gaorong Ventures, with dozens of investments made since 2018.

Looking ahead, Yang Kun believes the next decade will continue to see abundant healthcare innovation. "Healthcare remains in a technology-driven phase of innovation." "From both the company and investor perspective, the long-term outlook is very strong. Short-term bubbles and volatility don't change the underlying trend."

At the same time, he pointed out, "Healthcare has always been about niche markets. To succeed, whether as an entrepreneur or investor, the only goal is how to achieve a leading or dominant position in your niche." Healthcare investing also demands deepening expertise across several dimensions: first, returning to science and fundamental scientific principles; second, returning to the industry itself — starting from science but running through clinical and industrial applications to capture real opportunities; and from the investment side, increasingly requiring investors to add value through accumulated industry expertise and timely access to resources.

Globalization · Advance Intelligence Group Closes Over $400 Million Series D, Using AI to Reshape Finance and Retail

In September, Advance Intelligence Group, an Asia-Pacific technology company powered by AI, announced it had raised over $400 million in Series D funding. The round was led by SoftBank Vision Fund II and Warburg Pincus, with Gaorong Ventures among the participants. Gaorong had led the company's Series C in 2019. Following this round, Advance Intelligence Group's valuation exceeded $2 billion.

Founded in 2016, Advance Intelligence Group is building an AI-driven, credit-based market ecosystem to serve enterprises, consumers, and merchants. Its portfolio includes Atome, a leading "buy now, pay later" platform in Asia; ADVANCE.AI, a SaaS provider of big data analytics and enterprise solutions; and Ginee, an omnichannel e-commerce service platform.

The group's operations now span 12 markets across South Asia, Southeast Asia, Greater China, and Latin America, with 1,500 employees serving over 800 enterprise clients, 100,000 merchants, and 20 million consumers across its business and consumer segments.

Cross-Border Finance · XTransfer Closes Series D, Offering One-Stop Cross-Border Financial and Risk Control Services for Foreign Trade SMEs

XTransfer, a one-stop cross-border financial and risk control services provider for foreign trade enterprises, recently announced the completion of its Series D round, led by D1 Capital Partners. Gaorong Ventures, which invested in XTransfer's angel round and participated in subsequent rounds, continued its support in this round.

Following this funding, XTransfer will comprehensively upgrade its product and service offerings, increase R&D investment in big data and AI, and strengthen its anti-money laundering risk control infrastructure. The company will also recruit global talent to continue driving international expansion.

Founded in May 2017, XTransfer initially built its platform around B2B cross-border payments, establishing a financial and risk control service platform for foreign trade enterprises. Through partnerships with major multinational banks and financial institutions, it has constructed a global multi-currency unified settlement platform and anti-money laundering infrastructure comparable to those of large multinational corporations, providing SMEs with global and local collection, withdrawal, transfer, and foreign exchange services.

This year, XTransfer has increased R&D investment in its anti-money laundering infrastructure and expanded its global financial network to additional countries and regions with more partner banks. In July 2021, it launched a CRM product for SMEs engaged in foreign trade, helping traders manage their business more efficiently.

As of July, XTransfer had served over 150,000 SME clients, maintaining multi-fold annual revenue growth in recent years.

Drug Development · MingMed Completes Series A+ to Accelerate Clinical Trials of Key Pipeline Candidates

Guangzhou MingMed Pharmaceutical Technology Co., Ltd. (MingMed), a company dedicated to developing globally competitive first-in-class drugs, recently announced the completion of a nearly $50 million Series A+ round. Gaorong Ventures, which led MingMed's Series A, continued its investment in this round.

Founded in October 2019, MingMed has assembled a R&D team of top scientists and experts, supported by a scientific committee of globally influential researchers. With over ten product candidates across ophthalmic drugs, novel aesthetic medicine, small-molecule immunotherapy, and cell therapy, the majority are potentially breakthrough first-in-class innovations. Most have completed early-stage development or reached productization. Its first-in-class ophthalmic drug for dry AMD received FDA IND approval in May and has entered Phase I clinical trials.

AI Drug Discovery · Unknown Receives FDA Approval for Clinical Trial of Microbiome Drug

Unknown, an AI drug discovery company focused on gut microbiome therapies, announced that its investigational fecal microbiota transplantation (FMT) drug candidate, code-named XBI-302, has received FDA IND approval to proceed to clinical trials for acute graft-versus-host disease (aGvHD). This marks the first time a Chinese microbiome drug company has obtained FDA IND approval.

The approved drug targets acute graft-versus-host disease, a common complication following allogeneic hematopoietic stem cell transplantation in which donor immune cells attack the recipient's organs. The therapeutic approach replaces the patient's damaged gut microbiome with healthy flora, allowing it to co-develop with the transplanted stem cells to help rebuild the immune system while reducing antibiotic use during treatment and recovery.

Unknown is a domestic leader in AI-powered gut microbiome therapeutics, leveraging microbial technology, AI, and bioinformatics to develop live biotherapeutic products and microbial small-molecule modulators. The company has built six platforms spanning multi-omics computation, key bacteria identification, culturomics, animal model validation, and microbiome drug manufacturing, bringing together leading experts in bioinformatics, microbiome R&D, clinical research, and drug evaluation to support its development and preclinical research.

Semiconductors · Adaps Photonics Closes Series B1, Advancing High-Performance dToF Depth Sensor Chips

Shenzhen Adaps Photonics Co., Ltd. recently announced the completion of a tens-of-millions-of-RMB Series B1 round, led by Gaorong Ventures with participation from OPPO and others.

Founded in May 2018 by four PhD returnees from top international universities, Adaps Photonics is dedicated to applying world-leading single-photon avalanche diode (SPAD) technology to develop high-performance direct time-of-flight (dToF) depth sensor chips for smartphones, LiDAR, robotics, VR/AR devices, and other applications.

In July 2021, Adaps Photonics officially released its independently developed dToF single-photon imaging sensor, code-named ADS3003, using advanced backside-illuminated 3D stacking technology with performance reaching international first-tier standards. This provides an era-defining solution for high-end consumer electronics, LiDAR, and other 3D sensing applications — and represents China's first dToF sensor chip using 3D stacking technology.

Artificial Intelligence · Tianrang and Zhuiyi Technology Complete New Strategic Funding Rounds

Tianrang recently announced a strategic funding round of tens of millions of RMB, with Yinxingu Capital and Shanjin Fund participating. Gaorong Ventures, which led Tianrang's angel round and invested in subsequent rounds, continues its backing. The proceeds will primarily strengthen its competitive moat and increase R&D investment in complex systems intelligent decision-making. The company is also targeting digital transformation, using its general-purpose intelligent platform as a core engine to provide "big intelligence" for the digital economy.

Tianrang is an innovation enterprise focused on complex systems intelligence, applying self-developed AI technologies combined with deep industry understanding to solve analysis and decision-making problems in complex systems. Its solutions already serve urban operations, traffic management, financial insurance, and commercial retail across city and enterprise digitalization scenarios, aiming to empower industries at minimal cost and maximum speed — making intelligence as accessible as utilities.

On September 27, Zhuiyi Technology announced strategic investment from CICC Capital's infrastructure fund. The two parties will accelerate the integration of industrial and financial resources in new infrastructure innovation projects involving AI, collaborating closely on capital, technology, industry, and ecosystem partnerships to support upgrading across more industries.

In June this year, Zhuiyi Technology received a strategic investment of hundreds of millions of RMB from China Internet Investment Fund and China Mobile Innovation Industry Fund, with Gaorong Ventures among those increasing their investment. Gaorong had led Zhuiyi's Series A in 2016 and participated in multiple subsequent rounds.

Leveraging leading AI technology and product capabilities, Zhuiyi has actively contributed to national "new infrastructure" initiatives, building its AIForce digital employee product suite and AI application platform around conversation and analysis. Through deepening industry practice and mining scenario value, it has developed intelligent solutions for marketing, sales, service, and operations, establishing itself as a leading AI startup with extensive benchmark clients and practical experience.

New Brands · Efficacy Skincare Brand "Puskinology" and Wig Accessories Brand "LUCY LEE" Complete New Funding Rounds

On September 15, Puskinology, an emerging domestic brand focused on "efficacy skincare," completed a nearly 100 million RMB Series A round led by Gaorong Ventures. The funding will be used for brand building, product line expansion, and supply chain optimization.

Founded in 2021, Puskinology entered the skincare market through the niche segment of "efficacy skincare," emphasizing novel process innovation. Its founding vision is to provide users with "scientific, streamlined, effective" skincare solutions and create genuinely efficacious products.

Puskinology's products officially launched in June this year, currently centered on serum-type SKUs with strong user reviews and repurchase rates. The brand is now developing a richer product line, planning to launch its body care series "Puskinology · Qin" and gradually completing its product portfolio.

Recently, LUCY LEE, an emerging wig and hair accessories brand founded in 2020, announced a tens-of-millions-of-USD Series A round with participation from Gaorong Ventures, which had also invested in the company's Pre-A round in early 2021. The funding will be used for supply chain construction, brand and team building, and overseas expansion.

LUCY LEE is the world's first membership-based premium wig brand. It insists on using only top-tier materials — 100% Japanese-imported Kanekalon synthetic fibers and raw virgin braided hair — with every piece inspected by R&D specialists and quality control masters with over 20 years of wig industry experience. Its trend-setting academy collaborates with multiple luxury and fashion industry styling leaders to guide aesthetics, aspiring to become consumers' first-choice hair accessories brand.

Rong Hui · Visiting Lark to Explore Organizational Upgrade and Customer Success; Visiting Teld to Discuss New Energy and New Transportation

In September, Rong Hui organized visits to platform and industry companies for its investment and industry partners.

During the Lark visit, Lark president Zhang Nan shared ByteDance's thinking on organizational management and how tools have driven organizational evolution — from hundred-person to thousand-person to ten-thousand-person to 100,000-plus-person stages, building goal-driven organizations, developing corporate culture, using tools to improve organizational efficiency, and hiring, motivating, and deploying talent effectively. Lark management consultants and enterprise effectiveness advisors also led practical sessions and discussions on OKRs and customer success.

On September 11, Rong Hui organized a visit to Teld, China's leading charging network company. Yu Dexiang, chairman of both TGOOD and Teld, shared his perspectives on the new energy era and how charging network infrastructure enables building a new power system centered on renewable energy.

Yu identified three great transitions underway: from the traditional industrial age to a new industrial age; from the traditional energy age to a new energy age; and from the traditional consumer internet to a new industrial internet. Based on these shifts, he discussed how the convergence of new energy and new transportation creates an integrated ecosystem spanning products, technology, energy, and data. He also shared reflections on the nature of innovation, managing cross-disciplinary technical teams, cultivating entrepreneurial resilience, and ecosystem-building through party organization.