Six GGV portfolio cos have gone public since Q4 2019, says Jixun Foo

Jixun Foo, managing partner of global venture capital firm GGV Capital

Despite the adverse impacts of the coronavirus crisis, GGV Capital has enjoyed a handful of initial public offerings (IPOs) of its portfolio companies, in which the global venture capital firm still owns shares worth about $1.5 billion.

To break down the numbers further, as many as six of its portfolio companies have hit the bourses to rake in capital since the fourth quarter of 2019. The most recent ones include Xpeng Motors’ $1.5-billion IPO on the New York Stock Exchange (NYSE) and BigCommerce’s $216-million Nasdaq IPO.

Expand Table

HeadquartersCompanyDate of listingIPO locationFunds raisedBusiness
ZhuhaiWPS/Beijing Kingsoft Office Software2019-11STAR Market4.5 billion yuan ($659 million)Kingsoft Offce is best known for its WPS Office software, a free alternative to Microsoft's software suites including Word and Excel.
GuangzhouEhang2019-12Nasdaq$40 millionEhang Holdings is a Chinese developer of autonomous drones.
BostonDraftKings2020-04Nasdaq (Through a blank-check company, Diamond Eagle Acquisition Corp)N/ADraftKings is a daily fantasy sports contest and sports betting provider.
Shanghai & Santa Clara, CaliforniaAgora2020-06Nasdaq$350 millionAgora is a real-time engagement API provider.
AustinBigCommerce2020-08Nasdaq$216 millionBigCommerce sells small and medium-sized businesses software that enables them to create and manage e-commerce websites.
GuangzhouXpeng Motors2020-08NYSE$1.5 billionXpeng Motors is a smart electric vehicle maker that now markets a four-door sports sedan and a SUV under the Xpeng Motors brand.

“This year has been a bit of a roller coaster ride,” Jixun Foo, managing partner at GGV Capital, told DealStreetAsia in an interview. “The stock market demonstrated a fairly dramatic reaction … The whole market – the tech market in particular – is hitting the roof.”

The technology sector of late has been witnessing significant traction with the pandemic prompting companies to adopt digitisation across the world.

“Obviously, there is a lot of euphoria. But digitisation behind small and medium-sized enterprises and their consumers is real. That’s why the market is kind of paying ahead,” said Foo.

The sector has been staring at a fierce competition as risk capital investors jostle to clock the right deal even as valuations maybe a tad high.

That probably explains why the market is “rewarding” players who are promoting the digitisation process, he said. Take Xpeng Motors’ stock price for instance. It jumped over 40 per cent on its debut date of trading on August 27.

Foo is one of the six managing partners leading investment efforts at GGV Capital, that manages a total of $6.2 billion across 13 funds.

Each year, the firm deploys around 80 per cent of an investment budget of about $600 million in China and the United States. The remaining is invested in emerging markets in Southeast Asia, India, Latin America, and Israel.

Last week, GGV Capital was looking at a new deal in India. The China-India standoff  “doesn’t deter us from looking at India….. In fact, the withdrawal of Chinese capital is actually good for us because it makes us even more competitive in India,” said Foo.

GGV’s portfolio companies in China include prominent names such as Baidu, Boss Zhipin, Xpeng Motors, and Didi Chuxing. Meanwhile, in SEA and India, it has investments in Grab and Udaan, among others.

Edited excerpts of an interview with Foo:

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.