Minority investment companies like Sequoia Capital and Hillhouse Capital have been actively investing in technology startups and public companies in China. Their investment activities provide valuable insights into the strategies of top VCs. By analyzing their publicly available data, we can better understand how they operate. This article will focus on reviewing the investment records and patterns of major investment companies like Sequoia and Hillhouse.
IT Orange and Crunchbase track Sequoia and Hillhouse’s private market deals
For private market investments in startups, IT Orange and Crunchbase are useful resources to look up deals by investment companies like Sequoia and Hillhouse. These two databases have extensive coverage of China’s technology and consumer internet sectors, which is where most of Sequoia and Hillhouse’s deals are focused. After finding a list of deals, it is helpful to cross-check against company press releases on 36Kr or company websites to validate the investors and amounts raised. Startups typically publish press releases after closing a new round of financing.
For example, according to IT Orange data, Hillhouse invested in ByteDance’s Series E round in 2018 along with KKR and General Atlantic. We can find the original press release from ByteDance confirming Hillhouse as one of the investors in its billion dollar raise that year.
Public filings reveal investment companies’ positions in listed companies
For public market investments, listed companies have regular disclosure requirements and file documents publicly. This means stock exchange websites like those of SEC, HKEX and SSE contain details on investment companies’ shareholdings and trading activities.
For instance, Sequoia’s public portfolio and position sizes in US-listed stocks can be found in SEC filings. Hillhouse’s stake in WuXi Biologics is disclosed in HKEX filings. By cross-checking annual and quarterly reports of listed companies, we can verify investment companies’ disclosed holdings.
Investment strategies differ between early and late stage deals
The investment strategies between private market and public market deals also differ for investment companies. In private markets, Sequoia and Hillhouse focus on early to mid stage technology startups. As growth investors, they take minority stakes in startups and aim to exit through IPOs.
In public markets, these investment companies look for listed companies that still have growth potential but lack resources. They provide further financing for growth by participating in secondary offerings. The goal is similar – capitalizing on upside through share price appreciation while maintaining minority stakes.
By leveraging public databases and filings, the investment activities of major VCs like Sequoia and Hillhouse can be analyzed. This provides insights into how top investment companies operate and pursue deals in both private and public markets.