China – where the next herds of social enterprise Unicorns in the world?
In 2017, 1/3 of the global start-up unicorns were born in China. Among them, Meituan.com, Xiaomi, Ant Finance, Elema, Mobike are all internet-based companies with more than $100m valuation, and surprisingly they all claimed their next goals to be “social enterprises”. Is that by accident or the next wave of start-ups in China? Jack Ma has an answer, “to be a great company you need to think about what social problem you can solve.” Meanwhile, Sequoia Capital, Tsing Capital, and Yuhong capital are the first group of domestically-based social value investors. Take Yuhong Capital as an example, since its first impact investing in 2012 it has invested in 27 social enterprises in low-carbon, environmental protection, green agriculture, health and aging care, and knowledge sharing. The average ROI in those investments is 30% and one of its investees LvKang Medical Care is preparing for IPO currently. For example, “Blued”, a social enterprise from its born for LGBTQ rights has successfully raised the 7th round funding of $100m in 2018 and another social enterprise promoting mother-tongue education has attracted $16m from Yuhong Capital in early June 2018. Alliances such as CGPI, CESEIF, CASVI and incubators such as NPI, Green Accelerator, Impact Hub have also established in last 5 years to accelerating the development of this sector. Municipal governments like Shenzhen Futian District also joined this force in 2018 by providing grants and issuing favorable policies to participants. Mr. Xu Yongguang, a key opinion leader in fostering social entrepreneurship and impact investing in China, has witnessed the evolution of this sector in last 10 years and believes that China has now become a leading force in impact investing and social enterprises in the world. This session will explore the above success stories and challenges for social enterprises and impact investors in China, as well as the secret sauce of a “China Model” and how to partner with the world players to achieve greater social impacts.
China, China model, impact investing, Social enterprise unicorn, social impact, Social Innovation, Social value investment
Bolun Li, Co-Founder, Development Innovation Insider (Diinsider) Yi Fang, VP, YuHong Capital (Impact inveting) Angela Bai, Secretary General, China Alliance for Social Value Investing (CASVI)
Cathy Sheng, Secretary General, China Social Entrepreneurship and Investing Forum (CSEIF)
• Diinsider: http://diinsider.com/ • CASVI:https://www.linkedin.com/company/社会价值投资联盟%EF%BC%88深圳%EF%BC%89/ • China Social Enterprise and Investment Forum: http://cseif-2018-en.eventdove.com/ • China Global Philanthropy Institute: http://en.cgpi.org.cn/ • Sequoia Capital: https://techcrunch.com/2017/12/20/sequoia-is-looking-to-raise-a-5-billion-investment-fund/ • Yuhong Capital: http://www.yuhongcapital.com • Tsing Capital: http://www.tsingcapital.com/ Article on China Philanthropists invest in Climate change: https://www.townandcountrymag.com/society/money-and-power/a20720193/china-philanthropists-climate-change/