Chinese VCs Wresting for the cream of New Consumer Brand Space

Popmart, backed by Sequoia has swept the world with their toy vending machines,
Lines are often seen outside HeyTea, the takeaway tea shop that reached RMB 10 billion valuation.

The Battlefield for VCs

Ye Chunyan, a partner of Zhengxingu Innovation Capital (hereinafter referred to as “Zhengxingu”), sent some researches on Popmart domestic and foreign comparable companies to CEO Wang Ning. She wants to try again to convince Wang Ning to open up financing. This case is difficult to get into. Ye Chunyan knows that several other big funds are eager to try, including Tencent and Ali.

Molly is the main character in Popmart’s series, hugely popular among the teens and young.
Moody is a startup brand of trendy contact lenses featuring unique pastal colors.
Baijia’s snacks and instant noodles are a big hit.

The First Mover

At the same time as the intensive financing of top brands, it is the infinitely rising curiosity of the venture capital circle for an emerging firm: Black Ant Capital (BA Capital).

Current team at BA Capital (from company website)

So why are brands willing to accept the entry of Black Ant Capital?

Many people in the industry expressed the consensus that among a large number of consumer investment institutions, the founding team of Black Ant is a special existence, young and financially free, and understands not only investment but also the consumer industry.

Conservative or sexy?

Now, brand investment is full of people from the top of the mountain to the mountainside, “just like a Shura market.”

“After 95 (born after 1995) generation is the force behind the success of new consumer brands. They do not trust big brand name and tend to explore among peers.
New supply chain infrastructure in China has allowed customized products to be produced and scaled, fuelling the explosion of new consumer brands.
Outdoor Sport Brand EDCO is a relatively niche brand with strong followers.
Mega Brands incubated from the Tao Brand platform on Taobao



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