Rongbao · May | Large-Memory Computing, Autonomous Driving and Other New Technologies Accelerate Adoption; Integration of Goods and Services Emerges as New Consumption Trend

About Rongbao: Rongbao is a monthly digest that curates noteworthy news and insights from Gaorong Ventures and its portfolio companies. Each issue shares just 10 items — including key funding updates and milestones, but also new trends, innovations, and perspectives. As Gaorong Ventures works toward its vision of "creating" a better life through innovation, we believe every step forward unlocks infinite possibilities.

New E-Commerce · Pinduoduo Posts Q1 2020 Earnings: User Growth Continues to Lead the Industry, Steadily Entering the "600 Million" Era

Pinduoduo recently released its Q1 2020 financial results. For the twelve months ended March 31, 2020, the platform's active buyers reached 628 million, with 42.9 million added in a single quarter — a 42% year-over-year increase that continues to outpace the industry. The company is steadily entering its "600 million" chapter. In Q1 2020, Pinduoduo generated revenue of RMB 6.541 billion, up 44% year over year. Gross merchandise volume (GMV) for the trailing twelve months reached RMB 1.1572 trillion, a 108% increase. Average annual spending per active buyer on the platform reached RMB 1,842.4 as of end-March, up 47%. Pinduoduo stated that the company has ample cash reserves and will continue to ramp up its "RMB 10 billion subsidy" program to give ordinary people access to more cost-effective, quality products. In 2020, Pinduoduo pioneered a new "government-business collaboration + livestream agriculture support" model. As of May 14, its "mayor and county magistrate livestream rooms" had cumulatively sold over 425 million kilograms of agricultural products. The company also partnered with governments and enterprises across 16 provinces including Guangdong, Zhejiang, Shandong, and Jiangsu to advance an industrial belt recovery alliance, helping Chinese manufacturers shift "from offline to online" and "from export to domestic sales" — directly driving over RMB 5.89 billion in transaction volume.

Big Memory Computing · MemVerge Closes $19 Million Strategic Round to Accelerate the Big Memory Computing Era

On May 12, MemVerge, inventor of the big memory software Memory Machine™, announced it had completed a $19 million financing round (Read more), with strategic investors including Intel, Cisco, NetApp, and SK hynix. Gaorong Ventures led the company's previous round and continued to increase its stake in this round. The Memory Machine™ software is scheduled for official launch in Q2 2020.

The combined strategic investment from global data center industry leaders signals that MemVerge is pioneering a new trend in memory computing — big memory computing. This innovative technology promises to revolutionize data center infrastructure, enabling all applications to run in memory. Big memory computing combines persistent memory hardware with in-memory computing software, characterized by more abundant, persistent, and highly available memory capacity. MemVerge was co-founded by Dr. Charles Fan, former Senior Vice President at VMware and EMC; Shuki Bruck, co-founder of XtremIO and Rainfinity and Gordon Moore Professor at Caltech; and Dr. Yue Li, a Caltech postdoctoral scholar. Memory Machine™ integrates Intel® Optane™ persistent memory technology, enabling enterprises to process the explosive growth of data in memory, with a product roadmap targeting petabyte-scale data processing at nanosecond speeds. Currently, MemVerge's big memory software has clear application scenarios in artificial intelligence, machine learning, and financial market data analytics.

Autonomous Driving · Nuro Partners with CVS Pharmacy for Autonomous Medicine Delivery, Expanding into Healthcare

Autonomous driving company Nuro recently announced a partnership with CVS Pharmacy to deliver medications to residents in select areas of Houston, Texas.

After purchasing medications and daily necessities through the CVS website or app, consumers can select free delivery via Nuro's autonomous vehicles. When the vehicle arrives, customers verify their identity and retrieve their items. This CVS partnership marks an expansion of Nuro's delivery services from retail and fresh groceries into healthcare. During the COVID-19 pandemic, Nuro also delivered food, medicine, and other supplies to field hospitals in Sacramento and San Mateo, California. The company had previously announced partnerships with Walmart, Kroger, and Domino's Pizza to pilot autonomous delivery services for the general public.

Smart Wearables · NYSE: ZEPP and USTC Advanced Technology Research Institute Establish Joint Brain-Computer Intelligence Laboratory

On May 25, NYSE: ZEPP (NYSE:HMI) and the University of Science and Technology of China (USTC) Advanced Technology Research Institute announced the establishment of a "Brain-Computer Intelligence Joint Laboratory." The collaboration combines NYSE: ZEPP's R&D capabilities in smart wearables with USTC's research strengths in neuroscience and artificial intelligence to jointly break through key technologies and build new models for proactive health management.

Following its establishment, the joint laboratory plans to conduct research on both non-invasive and invasive brain-computer interfaces, with a focus on emotion recognition, sleep health, epilepsy detection, and brain semantic parsing. The research will use EEG signals as information carriers combined with smart wearable devices, highlighting the distinctive features of brain-computer intelligence. Both parties will jointly develop a portable non-invasive EEG acquisition prototype system, conduct invasive brain-computer interface experiments, complete the integration of hardware and software for detection equipment, and map stress-response-related neural circuits across the whole brain in animal models. In recent years, NYSE: ZEPP has been increasing its R&D investment in cutting-edge sports and health fields, having previously established a "Track and Field Joint Laboratory" with the Chinese Athletics Association and a "Wrist-Worn Smart Wearables Joint Laboratory" with Academician Zhong Nanshan's team, among others.

Healthcare · Qitan Technology, Leader in Nanopore Gene Sequencing, Raises Over RMB 100 Million; Gaorong Ventures Leads Round

In May, Qitan Technology, a domestic leader in nanopore gene sequencing, announced the completion of an oversubscribed RMB 100 million+ Series A round (Read more), led by Gaorong Ventures, with Yinxingu Capital participating and existing investors including Yahui Investment making additional investments. Founded in 2016, Qitan Technology focuses on the independent R&D, manufacturing, and application of nanopore gene sequencers and supporting reagents to meet growing demand for gene sequencing in life sciences and healthcare.

Gene sequencing is a core technology for precision medicine. The nanopore gene sequencing technology that Qitan Technology is tackling represents the most advanced single-molecule gene sequencing approach available, and the company has directly entered the upstream segment of the industry chain — gene sequencing instrument development — which represents the highest technical barrier and greatest R&D difficulty. Compared with SBS-based sequencing equipment, nanopore gene sequencers offer ultra-long read single-molecule sequencing capabilities, real-time output of sequencing results, and significant advantages including portability and low per-run costs. They can be widely applied in rapid pathogen detection, genomic structural variation detection, methylation detection, direct RNA sequencing, and metagenomic sequencing, while also providing end-to-end "sample-to-conclusion" solutions with potential for point-of-care testing (POCT) and even consumer-grade gene sequencing applications. Qitan Technology's nanopore gene sequencer has undergone multiple iterations and is now in the final sprint toward product prototype completion, with the first product expected to be finalized and enter small-batch production in 2020 for final delivery to users.

Healthcare · Shuimu Future Completes Angel Round, Building World-Class Next-Generation Drug Discovery Platform

Shuimu Future recently announced the completion of a tens of millions of RMB angel round (Read more), jointly invested by Gaorong Ventures, Puhua Capital, and Mint Ventures. Founded in late 2017, Shuimu Future is dedicated to using breakthrough technologies to dramatically accelerate drug development timelines and improve the druggability of difficult targets.

Since its founding, Shuimu Future has built Asia's first commercial protein structure analysis platform centered on 300kV top-tier cryo-EM, leveraging Tsinghua University and its self-developed revolutionary structural analysis methodology and structure-based and computational drug discovery technologies to construct a world-class next-generation drug discovery platform. The company provides comprehensive technical services to global pharmaceutical R&D companies and institutions, including novel drug target validation, compound library screening, lead compound discovery, and therapeutic antibody development.

Shuimu Future's novel drug discovery technologies effectively address the limitations of traditional drug development methods — unknown target structures, high randomness, long development cycles, and high costs — pushing structure-based drug design (SBDD) to new heights. The company's management and technical team members primarily come from top domestic research institutions including Tsinghua University and the National Institute of Biological Sciences, with numerous experts in protein crystallography, computational chemistry, immunology, medicinal chemistry, and other drug R&D fields.

Online Recruitment · BOSS Zhipin Partners with CCTV News to Support 8.74 Million Graduates Entering the Workforce

On May 19, BOSS Zhipin and CCTV News jointly launched the "Jobs for You" large-scale campus recruitment livestream initiative to support 8.74 million graduates entering the workforce. Before the livestream was even halfway through, the platform had already received over 65,000 resumes from graduating students. The series of public welfare activities will continue for two months, expected to provide more than 200,000 positions for graduates. The number of college graduates in 2020 reached 8.74 million, a new record. With employment conditions further strained by the pandemic, BOSS Zhipin and CCTV News initiated this public welfare effort to tangibly help graduates expand their employment channels and clarify their career directions. BOSS Zhipin is also a major organizer of the Ministry of Education's "24365 Campus Online Recruitment Services" initiative. Going forward, BOSS Zhipin will continue to provide more employment opportunities for graduates, share career planning experience, and accompany graduates in realizing more possibilities in life.

Recognition · Gaorong Ventures Wins 6 Awards Across 4 Sectors in 36Kr 2019-2020 Rankings; 3 Gaorong Portfolio Founders Named to Fortune "40 Under 40" China List

In May, 36Kr released its 2019-2020 annual TOP 20 rankings for enterprise services, healthcare, online education, and media & entertainment. Gaorong Ventures was named to the 2019-2020 TOP 20 Enterprise Services, Online Education, and Media & Entertainment Investment Institutions lists. Gaorong Ventures founding partners Chang Chen, Gao Xiang, and Yue Bin were respectively named to the 2019-2020 TOP 20 Healthcare, Online Education, and Enterprise Services Investors lists.

Fortune (Chinese edition) released its "40 Business Elite Under 40" China list. Fortune noted that amid the 2020 pandemic, the young business leaders on the list have not only achieved career success but more importantly have used various methods to address public challenges, achieving win-win outcomes for both business and society. Three Gaorong portfolio founders made the list: Jing Chang (38), founder and CEO of Roborock; Yue Wu (37), founder and CEO of Zhuiyi Technology; and Peng Shen (33), founder and CEO of Shuidi Company.

Perspective · Rui Han, Gaorong Ventures: Integration of Brand and Channel, and Integration of Product and Service, Will Define Future Consumer Giants

Rui Han, Managing Director at Gaorong Ventures, recently spoke with 21st Century Business Herald about the firm's systematic investment logic in the consumer sector.

Han explained that in consumer investments, Gaorong Ventures seeks to continuously identify "New Supply" in the market; this new supply is driven by "New Demand"; and what structurally determines new demand is "New People" — making new people the primary driving force. New people are by no means limited to younger generations; anyone entering a new life stage can be considered "new people," and when the factors driving their consumption decisions change, structural new demand is created.

Han believes that over the next 5-10 years, new consumer giants will be characterized by two key features: the integration of brand and channel, and the integration of product and service. In the future, "scenario and function" will replace "category" as the primary label for consumer companies — for example, Dingdong Maicai addresses the dining table problem, while Perfect Diary addresses the vanity table problem.

Han noted that over a longer time horizon, COVID-19 will not fundamentally change the direction of the consumer industry. It acts more as a catalyst, accelerating changes that were already underway. First, the pandemic has further strengthened the Matthew effect among leading companies, with those possessing core competitive advantages gaining greater momentum for growth. Second, going forward, the dual themes of convenience and health will drive a major reshuffling in the food and beverage industry. Around convenience, 3R foods (Ready to Cook, Ready to Eat, Ready to Heat) are on the rise; around health, the "three lows" (low sugar, low salt, low fat) are increasingly becoming mainstream consumption trends.

Ronghui · Seizing Livestream Opportunities, Driving Traffic Growth with Data and Technology

In May, Gaorong Ventures continued its "Building Internal Strength" series of online practical courses in partnership with Tsinghua PBCSF's Global Entrepreneurial Leadership Program. Yuanyuan Zhao, former head of Taobao Live operations, shared insights on "2020: How to Capture Livestream Growth Opportunities," covering the livestream e-commerce industry landscape and decoding the underlying patterns of industry development.

Guoping Zhang, former head of Alibaba's online marketing department and CEO of Guangnian Lab, presented on "How to Be a Traffic Hunter in the 'Stock Era'? New Mindset, New Technology, New Team," interpreting the nature of traffic and sharing core strategies for key traffic channels including SEO, private domain traffic, WeCom, Douyin/Kuaishou, as well as guidance on building traffic teams.