Achieving instant fame in one battle: The story behind Zhejiang venture capital's bet on Zhang Xue
Zhang Xue has become an internet sensation. On social media, his story of dropping out of school at 14 to repair motorcycles and chasing after a TV station in the rain has been thoroughly dug out. The whole internet is talking about the legend of this "person who went from a motorcycle repair apprentice to a world champion creator".
A Chinese motorcycle brand that has been established for less than two years, in the World Superbike Championship, driving the 820RR RS model, crushed Ducati, Kawasaki, and Yamaha with an absolute advantage of nearly 4 seconds. It won two consecutive championships in the SSP category. For the first time, a Chinese motorcycle brand has reached the top of the world.
For most ordinary people, this kind of underdog story is the most interesting to talk about, and it also gives them a glimmer of hope for changing their fate.
But what really caused a stir (envy, jealousy, and hatred) in the capital circle is another thing.
Just 23 days before the championship, Zhejiang Venture Capital, backed by Zhejiang state - owned assets, just completed a 90 - million - yuan Series A lead investment in Zhang Xue's motorcycle company, pushing the post - investment valuation to 1.09 billion yuan at once. Although Zhejiang Venture Capital has been in the investment circle for many years and has had many successful cases before, this time it was like having a divine eye and became a legend overnight.
Two funds - Hangzhou Zhechuang Baige and Jinhua Zhechuang Jinyi Zhikong - hold a total of about 8.3% of the shares.
Source: Qichacha
What does this mean?
After the news of the championship spread, Hongchang Technology, a listed company on the A - share market with an indirect stake, had two consecutive daily limit up of 20%. Hongquan Technology and Zhenghe Industry also rose sharply, and motorcycle stocks such as Qianjiang Motorcycle followed suit.
Based on the reaction of the secondary market after the championship, the paper profit of Zhejiang Venture Capital's 90 - million - yuan investment is quite considerable. Even calculated based on the pre - championship valuation of 1.09 billion yuan, Zhejiang Venture Capital achieved a paper return of several times in just two months.
But the real highlight of this investment is not "good luck".
An institution that dares to heavily invest in a "grassroots" founder during the loss - making period is never an institution that relies on luck.
01 What to convince the investment decision - making committee?
You know, Zhang Xue's motorcycle company was established in April 2024. In 2025, the company's annual revenue was 750 million yuan, but it suffered a loss of 22.78 million yuan - the R & D investment was 69.58 million yuan, accounting for as high as 9.33% of the revenue, more than four times the industry average.
At the beginning of the year, the company even couldn't pay the salaries. Zhang Xue borrowed money from friends, peers, suppliers, and even the landlord, and barely scraped together 7 million yuan to pay the salaries.
What about the founder? He was born in 1987 and dropped out of school at 14. After achieving annual sales of 30,000 units at Kove, because he wanted to develop a high - performance three - cylinder engine independently, he had a fundamental disagreement with the investors and "quit naked" and left with nothing.
For most investment institutions, the conclusion in the due diligence report is likely to be: excessive R & D investment, serious losses, difficult - to - control founder, and unclear exit path.
A state - owned asset investor admitted: "The company is still in the red, the founder has absolute decision - making power over the company, and the exit expectation is not clear. These are all risks."
Not to mention investment institutions with a conservative style like insurance and banking institutions (hesitant and unprofessional), for most venture capital institutions, this kind of project is just normal.
So how did Zhejiang Venture Capital make the decision?
According to Cheng Junhua, the general manager of Zhejiang Venture Capital, "We make decisions through joint decision - making in the investment decision - making committee. At the investment decision - making meeting, there is no need for anyone to forcefully convince others. As long as the project is clearly presented, the highlights are clearly explained, and the risks are eliminated, we can make investment judgments based on our understanding."
This statement sounds very standard. But what really made this investment happen is that Zhejiang Venture Capital has a much deeper understanding than its peers.
02 The truth of the track ignored by most people
Most investment institutions' lack of optimism about Zhang Xue's motorcycle company stems from a basic judgment: motorcycles with a displacement of over 250cc in China account for less than 3% of the market each year, and the ceiling of this track is too low.
But if we break down the data, we can find another story.
In 2025, the total production and sales of motorcycles in China were 22.1093 million and 21.9677 million units respectively, with a year - on - year increase of over 10%.
But what really stands out is the structural data: The production and sales of large - displacement leisure and entertainment motorcycles with a displacement of over 250cc were 953,700 and 952,300 units respectively, with year - on - year growth rates of 23.3% and 25.87% respectively. The export of large - displacement motorcycles was also very strong. In 2025, the export of motorcycles with a displacement of over 250cc was 533,000 units, a year - on - year increase of 48.5%.
Source: Verification of Hardcore Technology
More importantly, there has been a qualitative change in exports. In 2025, the export value of motorcycles was 8.85 billion US dollars, a year - on - year increase of 26.78%. The growth rate has been consistently higher than the export volume. Chinese motorcycles are changing from "selling in large quantities" to "selling at a high value". From January to February 2026, the export of complete motorcycles was 3.2489 million units, a year - on - year increase of 22.25%, and the momentum continued.
The data of leading enterprises can better illustrate the problem: In the first three quarters of 2025, the motorcycle business revenue of Loncin Motor was 1.0714 billion yuan, a year - on - year increase of 14.91%. The overseas revenue of its Wujie series increased by 86.9% year - on - year. The revenue of CF Moto in the first half of 2025 was 9.855 billion yuan, a year - on - year increase of 30.90%. Although Qianjiang Motorcycle was under pressure in terms of performance, the export of medium and large - displacement motorcycles still increased by 15.3%.
Large - displacement motorcycles are not "niche toys", but a key track for the entire industry to leap from quantity to quality. This is what Zhejiang Venture Capital saw.
03 Review: Why is Zhang Xue worth betting on?
But a good track does not mean it is worth investing in. The more core decision - making basis is Zhang Xue himself.
Cheng Junhua said something very practical during the review: "Zhang Xue believes that Chinese manufacturing has the ability to compete head - on with foreign high - end brands. We found such an opportunity in Zhang Xue."
This is not just empty talk. From the investment timeline, Zhejiang Venture Capital found Zhang Xue in August 2025. They talked for three months, and Zhang Xue didn't even agree at first.
A founder in the loss - making period who is in urgent need of funds actually dared to say no to the investor. This in itself shows that he doesn't "take anyone's money".
The main basis for Zhejiang Venture Capital's judgment of Zhang Xue mainly includes three points:
First, he has proven himself at Kove. He increased the annual sales from 800 units to 30,000 units, and the Kove team was the first Chinese motorcycle team to complete the Dakar Rally.
Second, he is obsessed with engines. He independently developed the 819cc three - cylinder engine, which can reach a speed of 16,000 revolutions per minute, and its performance ranks among the top three in the world.
Third, he named the brand after himself. "If it wins, it's Zhang Xue who wins. If it loses, it's Zhang Xue who loses. There is no disguise and no retreat."
In the eyes of capital, this kind of entrepreneur who "puts himself on the line" is more persuasive than any business plan.
04 Zhang Xue's motorcycle company vs. industry leaders: gaps and potential
In 2025, the scale of Zhang Xue's motorcycle company was far less than a fraction of that of the leading enterprises, but its R & D investment intensity far exceeded that of its peers, and the sales growth rate of large - displacement motorcycles led the entire industry - this is exactly the "high - odds" logic that Zhejiang Venture Capital values.
Data sources: Company announcements, brokerage research reports, and public reports
It is estimated that in 2025, the average price of each motorcycle of Zhang Xue's company was about 30,000 yuan. The company would only break even when the annual sales reached 1.5 billion yuan and could make a profit when the sales reached 2 billion yuan.
Within 100 hours after the championship, 5,543 units were pre - ordered, and the daily sales reached nearly 200 million yuan. The orders have been scheduled until the end of June. The goal for 2026 is 60,000 units with an output value of 1.8 billion yuan, which is expected to be close to the break - even point.
From this perspective, Zhejiang Venture Capital's 90 - million - yuan investment is at the critical turning point of Zhang Xue's motorcycle company from "burning money for technology" to "using technology to gain the market".
05 Insights for investors and entrepreneurs
The insights from this event for the investment circle are much deeper than what meets the eye.
First, the investment logic of state - owned capital is undergoing a substantial transformation. In the past, when state - owned capital invested in projects, the proportion of reinvestment, industrial implementation, and low - risk preference were three insurmountable mountains. But when Zhejiang Venture Capital invested in Zhang Xue's motorcycle company, "there were no additional mandatory reinvestment requirements".
There is no bundling and no hard constraints. This institution is looking for long - term industrial synergy, not short - term administrative orders. More importantly, Zhejiang Venture Capital relies on "independent due diligence without relying on third - parties" at the investment decision - making meeting, rather than administrative orders. This kind of professionalism is what state - owned capital really needs.
Second, the fault - tolerance mechanism is untying the shackles for state - owned venture capital. In recent years, the policy environment has been continuously optimized, including the fault - tolerance mechanism, reinvestment mechanism, long - term assessment, etc., and the support for venture capital has been increasing. Without this institutional guarantee, it would be difficult for Zhejiang Venture Capital's investment decision - making committee to approve a 90 - million - yuan investment in a grassroots entrepreneur in the loss - making period.
The establishment of this mechanism means that state - owned capital is shifting from a single goal of "preserving and increasing value" to a multi - goal balance of "investing in early - stage, small - scale, and hard - technology projects".
Third, for entrepreneurs, Zhang Xue's story gives a simple but rare insight: The founder's extreme focus is in itself the best financing roadshow. After having a disagreement with the investors at Kove because of "wanting to independently develop a high - performance engine", Zhang Xue didn't compromise but chose to leave with nothing and start all over again.
This kind of paranoia is a minus point in the business model, but it is a plus point in the cognitive logic.
Investors will eventually do the math, but what often touches them at first is not the numbers - it's the video of "assembling an engine with eyes closed", the determination of the 19 - year - old boy chasing the car, and the courage of "putting his name on the line".
It took Zhang Xue 20 years to go from a motorcycle repair apprentice to a world champion. It only took two months for this investment from Zhejiang state - owned capital to Zhang Xue's motorcycle company to "explode". But all these "divine operations" are not accomplished by luck.
Real luck only comes when you are prepared.
The author believes that this case will definitely be included in the classic investment cases of 2026.