CTQuan Simultaneously Launches Overseas Investment Fund.
Chinese equity crowdfunding platform CTQuan recently raised approximately $4 million in financing round. Established in 2011, the platform was founded by top Chinese investors Lei Jun, Xiaoping Xu, and Kaifu Lee. It helps startups find their investors by leveraging the data analysis of startup data and its social network of investors.
According to TechCrunch, the Beijing-based company is similar to AngelList with its offering of investment information and a directory of Chinese startup companies, syndicated investment vehicles and its fund for investments.
Chief executive of CTQuan Li Xiaoning noted that the company’s recent financing came from an undisclosed angel investor in China. “I tried to stay away from traditional VCs. What we’re targeting is to replace them in early stage funding.”
Mr. Xiaoning also stated that investments into CTQuan and its platform are all denominated in Renminbi, the official currency of China. This also includes investments into the company’s dynamic funds. Unlike the syndicated model, CTQuan’s dynamic funds are discrete vehicles for individual companies. Mr. Xiaoning added, “For each investment we set up a small fund.”
Discussing CTQuan’s key strategies, Mr. Xiaoning said, “In the earlier deals, we were just brokers. Helping foreign startups find Chinese technology companies and then getting them to invest. In later deals we will get to be co-investors.
CTQuan is currently acting as a broker between Chinese companies and foreign technology startups. Speaking about the company helping U.S. startups, Mr. Xiaoning explained, “There’s opportunities for U.S. technology companies to come to China. [Chinese partner] can take a company with cutting edge technology into the Chinese market and take advantage of the local consumer market. The appetite for U.S. dollars is low, but the appetite for U.S. technology is very high.”