At the time of "the industry has been raising funds for a long time", Houxin Health Investment has recently successfully completed the first pass of the new fund. It is reported that it took about a year for Houxinjian to get 300 million yuan from the world's top 500 enterprise "New Hope Group" and the local government guidance funds in Quanzhou and Jinjiang, Fujian Province to set up a new key incubation fund.
As a CVC under New Hope, Houxin Health Investment has very rich industrial resources. After seven years of development, the CVC has rich experience in industrial incubation and project implementation, and they do not take "reinvestment" and "investment attraction" as a burden, and finally a number of funds have successfully won the favor of local government guidance funds.
In the capital winter, CVC, which has industrial resources, has become a "fragrant bun" in the eyes of government LPs. However, not every CVC is easily recognized by multiple governments. At a time when state-owned assets such as local government guidance funds have become important investors, Houxin Health Investment is obviously a particularly noteworthy sample.
The first pass of the new fund, Quanzhou and Jinjiang have invested
From the official launch of the new fund raising in 2023, it took about a year for Houxin Jian Investment to get 300 million yuan from New Hope, Quanzhou, Fujian and Jinjiang, which is close to 1/3 of the total fundraising scale.
In the face of increasing difficulty in raising funds in the industry, being able to successfully complete the first hurdle of a new fund in a short period of time undoubtedly reflects the ability of this CVC institution to raise funds through the cycle. More importantly, behind the raising of this new fund, there is a "two-way rush" between GPs and LPs after careful consideration.
As the source of the practice of the "Jinjiang experience", Jinjiang, a county-level city managed by Quanzhou, not only creates 1/16 of the province's GDP with 1/200 of the land area of Fujian Province, but also ranks among the top 100 counties in the country all year round, and has also continued to accelerate the high-quality development of the industry through the power of capital in recent years.
In order to promote the investment promotion of industrial funds to improve quality and efficiency, Jinjiang issued a document in 2023 stating that it will strive to introduce and cultivate various market-oriented private equity funds by 2025 to expand and strengthen the fund agglomeration area, leverage social capital through a 5 billion yuan parent fund, and create a "1+X" industrial fund cluster, and initially form a fund industry with a scale of 100 billion yuan in the city.
At the same time, Quanzhou also made it clear that it will introduce industrial funds to empower the real economy, strengthen cooperation with well-known fund management institutions at home and abroad, and comprehensively take measures such as expanding the industrial equity investment guidance fund of the municipal government, improving the county-level industrial guidance fund, and strengthening the industrial investment fund of state-owned enterprises. Among them, Quanzhou's first fund agglomeration area "Jinjin Private Placement" is located in Jinjiang.
For Houxin Health Investment, Jinjiang, which has one industrial cluster of over 300 billion yuan (shoes and clothing), one over 100 billion yuan (textile), two over 50 billion yuan (building materials, food) and three industrial clusters of over 10 billion yuan (integrated circuits, intelligent equipment, medical and health), is naturally an excellent investor for this new fund with an investment direction of biotechnology and big health.
As early as 2017, Houxin Health Investment began to cooperate with local government guidance funds, and not only successfully landed a number of funds in Nanjing, Qingdao, Putian, Zhuhai and other cities in a few years, but also successfully incubated well-known companies such as the healthy and beautiful CRO "Huante Biotechnology", the plant gene editing and breeding products and service provider "Weimi Biotechnology", the animal biological products company "Xingu Animal Protection", and the peptide drug R&D and production outsourcing (CDMO) supplier "Keno Houpu" in combination with the industrial cooperation framework of New Hope and local governments.
After investing in "Linyang Biotech", a one-stop contract development manufacturer of sterile injection injections located in Taiwan, Houxin Health Investment and the other party jointly funded the establishment of "Keno Houpu" in Putian, Fujian Province, making it the first demonstration project of the "Cross-Strait Biotechnology and Medical and Health Industry Cooperation Zone", and also the first CDMO pharmaceutical company in Fujian Province that integrates one-stop R&D, production and sales of APIs and injections.
At present, the GLP-1 API developed by Keno Houpu has completed the registration batch production, and has commercial production capacity, and has submitted DMF documents to the US FDA. In addition, the registration of the product in other markets is also progressing.
Whether it is the ability to skillfully deal with local governments, or the experience in attracting investment, as well as the high degree of compatibility between its own positioning and the local industry, coupled with the support of the big tree of New Hope, it is enough to attract local government guidance funds in Quanzhou and Jinjiang to choose Houxin Health Investment.
Backed by New Hope, all-round empowerment is invested
With the strong support of New Hope, Houxin Health Investment naturally has many unique advantages.
Since 2017, New Hope has focused on biotechnology, medical and health care. Feeling that these tracks continue to heat up, New Hope decided to set up an investment team in this field, and finally build, support and support the partner's business investment and operation platform - Houxin Health Investment.
"Houxin Health Investment is the CVC of New Hope, and at the same time, it has sufficient independent decision-making space, and the relationship between the two sides is a tree and a vine." In the view of Tang Xun, founding partner/CEO of Houxin Health Investment, New Hope is the cornerstone investor of Houxin Health Investment, and Houxin Health Investment plays an outpost role in New Hope.
The advantage of this relationship is that Houxin Health Investment can fully explore and utilize the resources of New Hope's industrial chain, and New Hope has a more flexible and comprehensive industrial perspective through Houxin Health Investment, and finally the two sides can form an expanding circle of industrial friends with capital as a link, and can form an industrial cluster effect based on the industrial characteristics of different regions.
As one of the world's top 500 enterprises, New Hope Group has been determined to "hope to make life better" in the course of more than 40 years of development, not only has a number of listed companies, but also deeply cultivated eight major industries, including agriculture and animal husbandry food, dairy FMCG, smart urban and rural areas, real estate and cultural tourism, chemical resources, ecological and environmental protection, medical and health, and financial investment.
Relying on the vast resources of New Hope, Houxin Health Investment can provide different support and empowerment for different types of enterprises and entrepreneurs, and at the same time endow them with brand power, cultural power, scientific and technological power, financial support, social resource power, enterprise management power and other strengths, and finally make itself have a strong ability of industrial incubation and project implementation.
After a long period of practice, this CVC has refined a set of industry incubation and project implementation methodology. According to Tang Xun, "first understand the real needs of the industry through industry research, and then deeply explore the opportunities existing in the industry, then find matching technologies, teams, environments, policies, etc., and finally use investment to connect all kinds of factors." ”
After discovering that there are a large number of unmet scientific research and development needs in the health and beauty industry, Houxin Health Investment invested in and controlled Asia's first zebrafish biotechnology company, "Huante Biotechnology", and innovatively combined the health and beauty industry with zebrafish biotechnology.
In addition to appointing CEOs, CSOs and other senior management personnel to Huante Biotech, Houxin Health Investment also helped the other party sort out its strategy, build an organization, connect with New Hope's business segment and its own invested projects, and facilitated its cooperation with industry regulatory authorities, industry associations, parks, etc., and also introduced a number of customers to the other party.
Through the strong empowerment and support of Houxin Health Investment, with the joint efforts of the management and all parties of Huante Biotech, the company has not only formed a "zebrafish + organoids + mammalian + human clinical high collaborative technical service system", but also grown into Asia's first and China's largest zebrafish service platform and China's only intelligent zebrafish experiment overall service provider, with a compound annual growth rate of 45% in the past three years.
It is worth mentioning that for key incubation projects, Houxin Health Investment will send CEOs and other executives to start businesses with the founders. In Tang Xun's view, the best empowerment is to send people, "On the one hand, we can keep abreast of the latest developments and conditions of the invested companies; On the other hand, we are better able to meet the needs of our portfolio companies. The ultimate effect is to help the portfolio companies grow better and faster. ”
This also enables Houxin Health Investment to play the role of "investor + entrepreneur + industrial group" at the same time, which can fully meet the core demands of different stakeholders while allowing itself to obtain long-term and stable returns.
Focus on biotechnology and health, and explore the benign model of CVC and industrial groups
With its unique genes and background, Houxin Health Investment has a unique investment perspective.
From the perspective of "Big Bio, One Health", Houxin Health Investment focuses on the investment in the common health of humans, animals, plants and microbial environments at all stages of development.
"First from genes to proteins, and then from cells to microorganisms, we will cut in from the biotechnology perspective of 'Big Bio'." Tang Xun said, "Under the development trend of the whole biotechnology, we will look at the 'One Health' of human health, animals, plants and the environment from the perspective of the industry. ”
This also makes Houxin Health Investment Co., Ltd. take industrial demand as the starting point and pay attention to the transformative investment opportunities brought by biotechnology to industrial sectors such as medical and health, agricultural technology, food safety, environmental protection and emission reduction, inspection and testing.
"When actually investing, Houxin Health Investment will judge what real needs exist in the industry, and then combine the development trend of the market and technology, and finally put resources into the real needs." Tang Xun added, "We focus on biotechnology and healthcare, focusing on the agri-food industry chain including breeding, animal protection, stem cells, genetically modified, synthetic biology, etc., as well as the healthcare industry chain. ”
It is not difficult to find that these areas highly overlap with New Hope's industrial sectors. Standing on the shoulders of giants, Houxin Jiantou can naturally see higher and farther more conveniently. If you look at it from a larger dimension, the key is that this CVC knows how to combine its own actual situation and take advantage of the policy in a timely manner.
As early as 2022, the National Development and Reform Commission issued the "14th Five-Year Plan for the Development of the Bioeconomy", which is also the first top-level design in the field of bioeconomy in mainland China. The plan proposes that the proportion of the added value of the bioeconomy in the GDP will increase steadily, and the strategic position of strategic emerging industries such as biomedicine, biomedical engineering, bioagriculture, biomanufacturing, bioenergy, bioenvironmental protection, and biotechnology services in the national economic and social development will be significantly improved.
As the key development direction of bioeconomy, biomanufacturing is one of the important means to cultivate new quality productivity. "After the establishment of Houxin Health Investment, it will position the main asset allocation direction and work allocation direction in the bioeconomy." According to Tang Xun, biomanufacturing is also the priority development direction of Houxin Health Investment.
It is worth mentioning that, unlike most financial investment institutions, Houxin Health Investment will focus on influential key incubation investments. Once the conditions such as industry, demand, technology, team, business, and policy are ripe, the CVC will bet heavily, and the shareholding ratio of the invested project will usually reach 30%.
In the future planning, Houxin Health Investment, which has a team of about 15 people and a fund under management of 3 billion yuan, is quite pragmatic. "We will not blindly expand the scale of the fund under management, but will invest more resources in key incubation investments." Tang Xun bluntly said that Houxin Health Investment wants to truly embark on a representative path of benign interaction and interactive rise between CVC and industrial groups.