Shen Nanpeng, founding managing partner of Sequoia Capital China revealed during an interview that Sequoia China has invested in north of 30 companies in China this year and has pulled off 3 successful exits – Qihoo 360 (NYSE:QIHU) and NetQin (NYSE:NQ) went public while China Entertaining Communication Group was acquired.
He also confirmed the speculation about Sequoia China investing in 360buy.com without telling the exact sum though.
Some of Sequoia China’s portfolios include social rating site focusing on books, movies and music Douban.com, craiglist-like service Ganji.com, daily deals vertical with cosmetics-centric Jumei.com and travel service Tuniu.com.
Renren, the Chinese social networking service in this September acquired 56.com. As one of 56.com early investors Sequoia China landed a 5 times return.
After last year’s ecommerce mania and with the unexpected VIE regulation lately, PE/VC industry in China is facing an uncertain picture this year. This was attested by investors’ extreme cautious over new projects. Thousands of group buying service closed down in a couple months ago according to industry statistics. When asked about the group buying pitfall, Shen remarked that, there’re some businesses in China with low entry barrier.
People flocked into the area in the beginning while few can survive. This applies to group buying industry as well. After full and open competition and market consolidation, the great guys will emerge upon the scene and eventually rule the market.