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SUBTLER VULNERABILITY
Conventional wisdom among players in China’s automotive innovation space states that internet guys are in trouble with the current regulatory crackdown – but we’re not.
The now-listed VC darlings Nio, Xpeng, and Li Auto have largely recovered from stock price declines earlier in 2021. On a one-year basis, they are up 100%, 97%, and 83%.
Meanwhile, the past week has seen a string of sizeable auto tech deals: Svolt, a battery spinout from Great Wall Motor, closed a $1.5 billion Series B; Geely’s electric vehicle brand, Zeekr, raised $500 million; and smart phone maker Xiaomi continued its transition into mobility with the acquisition of autonomous driving supplier Deepmotion.
Still, there is little support for the notion of an unscathed auto tech sector beyond the anecdotal. AVCJ Research's records show that automotive deals in China have topped $3 billion every year since 2018 but are on track for a dip in 2021, with only $840 million deployed prior to this week’s spate of activity.
Investors may do well to reconsider Chinese auto tech as a subject of government restrictions as well as subsidies. A clear reminder came this month with the passing of the Personal Information Protection Law, which includes specific rules for carmakers covering data on vehicle owners, drivers, passengers, and people outside vehicles. They are set to take effect on October 1.
In Depth:
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China Renaissance’s technology-focused investment business has grown from nothing to $9.5 billion in seven years. The firm wants to remain a boutique operator rather than embrace all stages and strategies.
Doctor Anywhere’s omnichannel approach to digitizing Southeast Asian healthcare is luring investors with eyes on the pandemic’s most logical trend. Preserving a first-mover advantage is the challenge.
China-based reimbursement platform Ekuaibao has ambitions to lead the digital transformation of corporate finance. Early investor Future Capital continues to re-up as the story unfolds.
EmergeVest has made a seed investment in Lucy, a Singapore-based neobank that focuses on home-based micro-entrepreneurs and Southeast Asia’s legions of foreign domestic workers. 
