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Gobi Partners Receives Two Awards, Including "Top 10 Venture Capital Firms of 2018"

On December 1 and 2, the annual "China Venture Capital Conference", which also celebrated "20 Years of Chinese Venture Capital", was successfully hosted by the China Venture Capital Association in Suzhou, China. Gobi Partners received two awards at the event: "Top 10 Venture Capital Firms of 2018 - Growth Stage" and "China Venture Capital's Top 100 Firms in 20 Years." 

The detailed list of rankings is as follows: 

Simultaneously, Gobi's Managing Director, Mr. Wing Hu, was invited by the organizer to participate in a discussion about "How a General Partner can improve their ability to make profitable investments." On the issue of post-investment management he said, 

"For Gobi Partners, post-investment management is about empowerment. First off, it is functional empowerment, such as finance, legal affairs, public relations, human resources; these specific functions are not necessarily perfected during the early stages of a company's framework. As an investment firm and a professional investor, we will definitely help our companies to sort out their structure and essentially become directly capable; there are many organizations going through that process now.

Secondly, the firm focuses on the empowerment of knowledge and information. Information gained during the investment process and after the investment has been made are inseparable. The investment team that handled the deal must be able to subsequently support the business and make the right judgements, they should be clear about the company and its status, because this is critical for helping these investee companies grow by using and combining this knowledge and information. 

Therefore, when managing a company post-investment, the investment team should empower the investee company, and not just its management team. I often encourage our portfolio companies to look to down the road during their development, while investment firms always look up at the sky. So, how do you create a better connection between investment firms and entrepreneurs? The key way is to have an exchange of information, and inter-operability. 

Additionally, capital markets always provide more asymmetrical information, especially in the primary market, where information is more opaque and asymmetric. As investors, we have seen more industries and entrepreneurs doing more solid things from the bottom up. As for the question on how to combine top to bottom and bottom to top, that is for the investors and the entrepreneurs of investee companies to solve. Only when both strategies are combined can the short-term development, medium and long-term strategies of a company be taken into account, including the long-term process of combining and integrating values. These are things that all professional companies need to think about. From an investment perspective, our professional abilities are investment and fundraising, so relatively speaking, our strength is helping startups to invest in the market; perfecting their external packaging and fundraising so they can access to resources. 

Lastly, resources empowerment. For example, each company has its own vertical, and we are always looking at what synergies it could bring to the table. These synergies could be more upstream or downstream, or it could create cooperation between industries, allowing companies to connect and inter-operate. This applies especially to our own investee companies, when they are able to exchange resources and achieve their own values, thus creating synergies and mutually beneficial win-win situations which are highly valued by investors. the other issue is creating the relationship between Limited Partners (LPs) and investee companies. One of our examples would be Camera360, which is a company known for creating camera software for mobile phones. The company's earliest users came from China; Gobi expanded abroad quite early on, and we saw the value of Camera360 acquiring overseas users, so we helped the startup to seek investment from our network of overseas LPs, which aids them in their plans to expand to markets overseas. 

These days, it's not only Chinese companies that are expanding abroad. A lot of foreign companies are also expanding into China. Many good business models and designs have a lot of potential for success in developing countries, in fact, we have been further empowered by the "Belt and Road" Initiative. At Gobi, we have combined our investment thesis with resources, in order to help them achieve commercialization, progress, and gain more operational capital. These are the things that we, as investors, need to support the startups after making an investment."