From VC’s Lens, Chongqing Has Myriad Opportunities in Science and Technology | Insights

Chongqing - On October 26, The 2023 Chongqing Venture Capital Conference (CVCC) in the Western (Chongqing) Science City painted a transformative picture of Choongqing's rapid ascent in the venture capital world. 

Historically known for its rich cultural heritage and gastronomic delights, Chongqing is now recognized as a prime location for technological innovation and advanced manufacturing.

Carved niche in technology and high-end manufacturing

David Wei, Chairman and Founding Partner of Vision Knight Capital, a venture capital and private equity firm headquartered in Shanghai, mentioned their association with Golden Ladies, a Chongqing consumer company they invested in a decade ago. Wei said that Chongqing is metamorphosing beyond being a consumer-centric city. 

Based on Vision Knight Capital's comprehensive annual research involving founders of over a hundred invested companies, Chongqing has emerged as a top choice for business expansion. The city is not only a consumer favorite but has also carved its niche in technology and high-end manufacturing.

Wei shared an intriguing finding. When entrepreneurs choose cities for expanding production, relocating headquarters, or establishing R&D centers, Chongqing consistently ranked in their top three preferences—this emerging attraction towards Chongqing concerns software-centric companies and the manufacturing sector.

While acknowledging Chongqing's robust and established manufacturing base, Wei emphasized the potential of integrating it with advanced intelligence. This blend of traditional manufacturing with modern intelligent decision-making is expected to birth versatile tech enterprises that balance the industry's "soft and hard" aspects.

Ni Zhengdong, Founder and Chairman of Zero2IPO Group, a leading venture capital and private equity service provider in China, shed light on their venture capital investment strategy. 

With 50% of their investments directed toward new consumption and the rest channeled to hard-core science and technology, Ni thinks companies with excellence in their tech capabilities, products, and market positioning will naturally magnetize venture capital.

Seed-stage investments in tech surpassing major Chinese cities 

Amidst these discussions, the Western Venture Capital Center's inauguration was highlighted. This initiative promises significant incentives for regional investments, including risk compensation for high-tech enterprise investments and substantial monetary rewards to stimulate fund establishment and operation.

Ni emphasized the profound impact of the Center on Chongqing. He drew a parallel between capital and "crude oil" and articulated how the former drives enterprises forward. When matched with promising enterprises, quality capital can catalyze high-caliber businesses.

Another highlight was Chongqing's announcement of an ambitious 30 billion yuan (about 4.1 billion U.S. dollars) industrial development fund for Western (Chongqing) Science City. This comprehensive fund, released in phases, would predominantly target sectors such as new energy vehicles, integrated circuits, biomedicine, new energy storage, and aerospace information.

Further cementing Chongqing's rising status was the 2023 Chongqing Equity Investment Market Development Report released by Zero2IPO Research. The report heralded the city's equity investment growth trajectory. A statistic showcased a 400% increase in registered equity investment institutions in Chongqing since 2014, a testament to its burgeoning appeal. 

In the first half of 2023, Chongqing's sectors, like biotechnology, semiconductors, machinery manufacturing, new materials, and automotive, attracted significant investment. Seed-stage investments comprised 16.7% of the total cases, surpassing cities such as Shanghai, Beijing, Chengdu, and Xi'an, according to the report.

Western (Chongqing) Science City formalized partnerships with 14 premier investment firms, including Zero2IPO Group, China General Consulting & Investment Co., Ltd., and Innoangel Fund in the event's signing ceremony.