Fengnian Capital's High-end Manufacturing Fund III has completed its first close with a scale of RMB 1 billion.

Recently, Fengnian Capital announced that its Phase III Fund for High - end Manufacturing has completed its first close with a scale of 1 billion yuan, and the final scale is expected to reach 2.5 billion yuan. The Phase III Fund for High - end Manufacturing has received recognition and support from many mainstream investment institutions in the market, with a more diversified and market - oriented investor structure. The LPs of this fund include leading mother funds such as CICC Capital, Xiamen C&D Emerging Investment, Beijing Equity, Xiamen Jinyuan, and CSC Financial Capital; local government - guided funds such as Hubei Provincial Guided Fund and Optics Valley CICC Fund; and market - oriented government investment platforms such as Tongling State - owned Assets Supervision and Administration Commission, Tongling Dajiang, Guang'an Jincai Group, and Xiamen Municipal Government. Among them, CICC Capital, Xiamen C&D Emerging Investment, Beijing Equity, Xiamen Jinyuan, Tongling State - owned Assets Supervision and Administration Commission, and Tongling Dajiang are all repeat investors, which reflects the long - term and continuous recognition of Fengnian by institutional investors.

Meanwhile, the investor structure of this first close shows a highly market - oriented characteristic. The investment proportion of market - oriented investors has reached over 50%, and most of them are influential leading mother funds, which is particularly rare in the current fundraising environment.

In the past two years, the fundraising in the primary market has been under continuous pressure and has been shrinking. Against this backdrop, Fengnian Capital has always been active at the forefront of the industry, making steady progress in all aspects of fundraising, investment, management, and exit. The target scale of the Phase III Fund for High - end Manufacturing is 2.5 billion yuan, and it successfully completed the first close of 1 billion yuan in about a year. This fund focuses on investing in excellent technology companies in China whose technologies are initially mature, with clear market demand, continuous industry growth, and at the turning point of development. As the fund management scale continues to expand, Fengnian Capital will also continue to build stronger competitive advantages in the technology investment field, and help more excellent technology companies become world - class competitive enterprises.

Expansion of management scale

Recognized by many mainstream investors

The first close of the Phase III Fund for High - end Manufacturing is not only the recognition of Fengnian Capital's decade - long practice in the technology industry by many mainstream investors such as market - oriented leading mother funds and government - guided funds, but also the confidence in the long - term positive development of China's technology industry.

Regarding the first close of this fund, Zhao Feng, a partner of Fengnian Capital, said: "We are grateful to the LPs for their long - standing support and recognition of Fengnian Capital. The successful first close of the new fund is an affirmation of Fengnian's team's investment ability in the technology industry and its ability to navigate through cycles, and it is also a firm belief in the future development of China's technology. In the past two years, the industry has been in a trough, and many excellent technology companies lack sufficient financial support. Fengnian hopes to reserve enough 'ammunition' through its own efforts to provide timely support to enterprises and entrepreneurs, and continue to strengthen our core competitiveness and barriers to promote more excellent 'seeds' in China's technology industry to become world - class leading enterprises."

Wang Wenhuai, the chairman of Xiamen C&D Emerging Investment, an important cornerstone investor of the Phase III Fund for High - end Manufacturing, said: "Fengnian Capital is deeply rooted in China's local technology industry chain and is a venture capital team with a mature investment strategy in China. Over the past decade, it has played a significant role in promoting China's local technology startup teams, especially in management empowerment. Fengnian Capital has established a mature management system after investment, which has helped many technology companies achieve better development. We look forward to Fengnian Capital creating more value for the local technology industry."

Beijing Equity, an important cornerstone investor of the Phase III Fund for High - end Manufacturing, said: "As an investor in Fengnian Capital's Phase III Fund for High - end Manufacturing, we have witnessed Fengnian Capital's profound accumulation and hardcore strength in the technology field over the past decade. From in - depth exploration of the industry chain to the assessment of technological barriers, its team has always targeted investment projects with accurate industry insights and has invested in excellent projects such as Dameng Data and Dalikeipu, which have grown into benchmarks in their respective segments. Remarkably, Fengnian Capital helps enterprises break through development bottlenecks through management empowerment. This perseverance in the real economy makes us full of expectations for the investment layout of the Phase III Fund in the technology track."

This fund is based in Optics Valley, Wuhan, Hubei. It will fully leverage the advantages of local talent, platforms, and funds, develop new - quality productivity according to local conditions, promote the in - depth integration of technological innovation and industrial innovation, and accelerate the industrial application of scientific and technological achievements.

"Focus + Heavy investment" in technology investment

Help enterprises navigate through cycles

The first close of the Phase III Fund for High - end Manufacturing means that Fengnian Capital's management scale will achieve a leap - forward growth.

Since its establishment in 2014, Fengnian Capital has believed that high - end manufacturing and the technology industry under the background of Sino - US competition are the tracks to focus on in the future. After a decade, with the continuous growth of China's economy and the rapid rise of the technology industry, China has quickly established a technology ecosystem with autonomy, wide coverage, and strong iteration ability. The "non - consensus" investment concept of Fengnian Capital in 2014 has now become the mainstream investment direction. Based on a decade of in - depth industrial research and management practice, Fengnian Capital has invested in leading projects such as Dalikeipu, Dameng Data, Xidian Co., Ltd., Shengke Nano, and Qiangyi Semiconductor in segments such as big data and information systems, automotive and new energy, semiconductors, electronic components, life sciences, and new materials.

Currently, the macro - environment is in a period of change, and the investment pace in the entire market has slowed down. However, having experienced multiple industry cycles, Fengnian Capital still firmly continues to invest in excellent projects and continuously explores the best practices in technology industry investment. Time is the best test. In the first quarter of this year, two companies heavily invested by Fengnian Capital were listed on the A - share market in two consecutive days: "Xidian Co., Ltd.", the largest probe station equipment manufacturer in the Chinese mainland, was listed on the Growth Enterprise Market, and "Shengke Nano", a well - known third - party semiconductor testing and analysis laboratory in the industry, was listed on the Science and Technology Innovation Board.

The first close of the Phase III Fund for High - end Manufacturing will provide sufficient "ammunition" for subsequent investments in more representative technology projects, and help more enterprises that meet the major strategic needs of the country and those that need to "fill the gaps" in the industrial chain to achieve rapid development. Currently, the fund has reserved multiple investment projects and has started relevant investment work.

Investment enters the "deep - water area"

Build a more hardcore technology investment map

Now, technology industry investment has entered the "deep - water area". For the market, how investment institutions can find new development paradigms in the established path has become a core issue in the industry. As the primary market moves from "short - term stimulation" to the new stage of "long - term value creation", management empowerment is even more important.

Fengnian Capital adheres to self - innovation. From adhering to the "non - consensus" technology investment concept in 2014 to the "management empowerment" practice over the years, it continuously creates value for enterprises and industries. Over the years, Fengnian Capital has successfully helped many enterprises build dual advantages of "technology + management". This positive feedback is not only reflected in the enterprise management performance but also in the enterprise's operating data and investment returns - for example, the iconic excess return cases of invested enterprises such as Dalikeipu and Dameng Data that have successfully gone public are traceable practices. These practices provide rich management experience and empowerment perspectives, which will help Fengnian Capital better serve invested enterprises and excellent projects in the technology industry in the future. Currently, Fengnian Capital has invested in many excellent growth - stage enterprises in fields such as new - generation information technology, semiconductors, automotive and new energy, electronic components, new materials, and life sciences, and will continue to build a more hardcore technology investment map in the future.

The first close of the Phase III Fund for High - end Manufacturing is just the beginning of a new development stage for Fengnian Capital. As the management scale continues to expand, as a leading domestic investment institution, Fengnian Capital will, based on a more forward - looking investment perspective, give full play to the institution's professional advantages, practice value investment and responsible investment down - to - earth, and build a more hardcore local technology industry map. It will be deeply embedded in the fabric of industrial and economic development and become a key facilitator for the realization of national strategies.

This article is from the WeChat official account "Fengnian Capital". The author is someone who empowers the technology industry. It is published by 36Kr with authorization.