Nearly one-third of the world’s best institutional investors in unicorns are headquartered in China, according to new research by Shanghai-based publishing group Hurun Report.
In total, the country is home to 29% of the world's venture capital firms that have funded private startups worth more than $1 billion. That’s the largest percentage of any country outside the United States, where 58% of such firms are based, according to the Hurun World’s Best Unicorn Investors 2019 list (link in Chinese), which was published Saturday.
Beijing is home to a greater percentage of unicorn investors — 19% — than any other city in the world, according to the report.
Chinese internet giant Tencent ranked as the world’s second-best unicorn investor, following a decade of investment in more than 700 social media, smart retail and fintech firms, including Kuaishou, JD Logistics, and Didi Chuxing. E-commerce giant Alibaba ranked seventh.
The top spot went to U.S.-based Sequoia Capital, which has invested in one-fifth of unicorns worldwide. The company established a China fund in 2005, targeting sectors like tech, health care, and consumer good services. The fund has so far supported more than 500 Chinese startups, including e-commerce site Pinduoduo and ride-hailing service Didi Chuxing.
Rupert Hoogewerf, Hurun Report’s chairman and chief researcher, said institutional investors play a vital role helping unicorns access cash and strategic resources. China has become a hot destination for top overseas venture capitalists thanks to its vibrant investment environment, he added.
Last month, Hurun Report released its Global Unicorn List 2019, which concluded that China is now home to more unicorns than the United States.
Contact reporter Ding Yi (firstname.lastname@example.org)