Shengjing provides capital and training to boost SMEs' expansion

One of the leading innovation and startup service platforms in China, Shengjing Group is powering one of the country's biggest talent pools with a series of services ranging from investment and fund management to startup training.

"Our mission is to help small and medium-size companies in China and boost innovation in the long-term," said Peng Zhiqiang, CEO of the company based in the Tsinghua Technology Park in Zhongguancun.

Next to China's prestigious Tsinghua University, it has been working closely with domestic and foreign capital institutions and funds, including Legend Capital, Hillhouse Capital, Sequoia Capital, 500 Startups and Viola Private Equity.

Over the years, the company has spared no effort to encourage innovation and creativity in countries along the route of the Belt and Road Initiative.

"I think in the past, Hong Kong has been the window for China's going out, and at Shengjing we believe Israel will be the next window for China to participate in globalization, especially in innovation."

Shengjing has already invested in Jerusalem Venture Partners, one of the biggest funds in Israel, and it is ready to take the game further.

"In the next year, we plan to invest 10 billion yuan ($1.45 billion) in Israel," Peng added, "and we will introduce 100 Israeli companies to China for investment and acquisition.

"It is harder to enter the market in the United States as they don't have much need for Chinese capital, but in Israel the capital size is relatively small. "The total amount of venture capital is between $2.5 billion to $3 billion, and direct investment from Europe, the US and China counts for 50 percent. We have already invested a total of $80 million, with $10 million in our fund of funds strategy."

Peng said investment in fund of funds should be encouraged especially in countries along the route, because "we can't easily tell if it's a good or bad project and there are certain risks in direct investment in project".

Recently the group has worked with Zhongguancun, Tsinghua Holdings and the municipal government, and has held the Zhongguancun International Entrepreneurial Festival to uncover young entrepreneurs' potential and source profitable new projects.

Mao Daqing, founder of a Chinese business incubator, said at the event that innovation and entrepreneurship will be the history-making mission for the next generation, and it is the main driver of development.

Peng said the intention of the event is to encourage innovation. The event has invited a number of well-established venture capital insiders including Mark A Siegel from Menlo Ventrus, Yoas Tzruya from JVP and Xiong Xiaoge from IDG Capital.

(China Daily 05/14/2017 page28)