Are China’s Fuerdai Wisely Investing, Or Wasting Their Parents’ Money?


But Wang Sicong insisted on investing. In the end, iDreamSky’s founders decided to sell a portion of their own shareholding to Prometheus Capital at a roughly 15% discount to its final IPO price of US$15 (one American Depository Shares equals four ordinary shares), which was completed seven months later last August.

In June, founders of iDreamSky proposed to take the company private at US$14 per ADS. The company’s shares now trade under US$12. Whether the go-private deal gets done or not, it looks like Prometheus Capital won’t strike gold in this one.

Other notable investments of the fund include mobile gaming firm Forgame Holdings, LeTV Sports, Chinese dental chain Arrail Dental, data analytics firm Palantir Technologies, and Chinese restaurant chain Hannashan Korean BBQ.

2) Enlightenment Capital

This is a venture capital firm established by Liang Zaizhong, the son of the founder of Shanghai-listed heavy machinery maker Sany Heavy Industry Co., Ltd.

Sany seeded the fund last week, and Liang Zaizhong, a director at Sany, serves as a partner at the fund.

It’s unclear how much dry powder the fund has, but it plans to invest in start-ups in the Internet Of Things (IoT) sector in China. It’s unclear if it has made any investments yet.

Both Prometheus Capital and Enlightenment Capital invest in sectors outside of their parents’ generation’s traditional businesses, with an understood objective to one day create synergy between their portfolio companies and their parents’ business empire.

3) GeekHouse Capital

GeekHouse Capital was co-founded in early 2014 by Wang Fuye, the eldest son of Wang Zhongjun, the chairman of Chinese film production company Huayi Brothers Medai Corporation.

 

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