Strategic Sectors

IDG Capital excels in three areas of investment: Venture Capital, Private Equity and M&A.

Our Investments focus on four strategic sectors:

Within these sectors, we will invest in companies at all development stages: start-up, growth, maturity, pre-IPO and post-IPO. The size of our investments range from one million to several hundred million U.S. dollars. As long-term investors, our goal is to work with leading entrepreneurs and management teams to make the world a better place. We are always looking for new dynamic business opportunities through which we can create value for our investors and portfolio companies.

Core Investment Themes

  • Target companies where we have the ability to improve performance
  • Leverage successful Chinese business models and innovation abroad
  • Facilitate the upgrading and transformation of the Chinese economy by partnering with Chinese companies to acquire technology and industrial know-how abroad
  • Inject assets to listed companies in the A share market to take advantage of the valuation gap
  • Help foreign brands expand in China to meet the needs of an emerging middle class with increased purchasing power

Case Studies

Venture Capital

An innovative, leading provider of software and IT services to China’s power and electricity industry.

Region: China
Industry: Information Technology
Investment Size: Over US$20 million
Co-investment Group: IDG Capital, Longshine management team, Alibaba Capital, Boyu Capital

As the market leader in management software, IT solutions, and system integration services for power companies in China, the business should be able to achieve at least 35% growth per annum

1) Identify the company’s major problems while a business unit of Amdocs (NASDAQ:DOX), an Israeli technology company. Support former management team’s buyout/carveout from Amdocs

2) Establish proper incentive mechanisms for the management team

3) Spin off less profitable telecom business to Huawei in order to focus on power industry

4) Restructure the company from off-shore to on-shore to prepare for a return to the domestic capital market

5) Help company build strategic partnerships with Alibaba to expand B2C business

6) Facilitate the IPO process as the largest institutional investor

Longshine has successfully gone from a net loss to a significant profit and has established itself as the market leader in software and IT solutions for both B2B and B2C businesses. Longshine was successfully listed in the A-share market, and IDG Capital is expected to realize significant gross return.

Meitu is one of China's leading suppliers of image editing software for mobile-based video and photography. Its virtual makeup applications generate 6 billion photos and videos per month.

Region: China
Industry: Technology Media & Telecommunications
Investment Size: Over USD$10 million
Co-investment Group: IDG Capital, Sinovation Ventures, Tiger Global Management, Qiming Venture Partners and others


Meitu became a dominant player as its market consolidated because it developed a series of popular beauty-oriented software and hardware products that allow users to enhance and manipulate images for a fast-growing “selfie” culture. The company has made significant breakthroughs in page views and user loyalty. IDG Capital already had a good working relationship with Meitu’s founder, Cai Wensheng, an ambitious, forward-looking entrepreneur.


We recommended that Meitu integrate a social networking feature into its smartphone’s image editing apps, leading to a significant increase in its user-base.


Meitu had an IPO in December 2016 on the Hong Kong exchange(HKG: 1357). The company currently has 450 million active users worldwide in 26 countries. We have remained on the board to help Meitu continue its development.

Private Equity

A national AAAAA scenic water town located in Eastern China. One of China’s top 10 historical & cultural destinations.

Region: China
Industry: Tourism
Investment Size: Low double-digit million USD
Co-investment Group: IDG Capital, China Youth Travel Service, Tongxiang City Government

Located in the heart of the Yangtze River triangle and a candidate for selection as a UNESCO World Heritage site, Wuzhen has the potential to be the number-one tourist destination in China land a leading tourist destination worldwide

1) Partner with the Tongxiang City government to help launch the project. Provide financial and managerial support throughout

2) Take an active role in the original plans and design of the scenic area. 

3) Help Wuzhen become the first Chinese tourism site to provide free Wi-Fi coverage, a key factor in its selection as the permanent venue for the prestigious World Internet Conference

4) Leverage IDG Capital’s resources in the TMT sector to help Wuzhen optimize its management and operations to streamline its business

5) Provide continued PR support to Wuzhen, utilizing IDG Capital’s extensive network in media and entertainment

Wuzhen has successfully grown into the most profitable AAAAA scenic spot in China. It has become a role model in the Chinese tourism industry and now is the permanent location of one of the most prestigious conference-World Internet Conference. It hosts more than five million Chinese and foreign tourists per year. IDG Capital has realized strong return on its investment.

A leading Italian luxury lifestyle brand, best known for its down jackets.

Region: Italy
Industry: Consumer luxury products
Year: 2011-2015
Investment Size: More than US$30 million
Co-investment Group: IDG Capital, Eurazeo

Moncler had untapped growth potential in product diversification and consolidation of distribution channels. Our in-depth knowledge of the Chinese and global retail sectors also identified several important geographical markets, including China, Korea and Japan.

Help promote Moncler’s brand image in China. Assist Moncler to foster partnerships with distributors and shopping mall operators in China and help it further expand in Asia.

During IDG Capital’s involvement with the company, Moncler Asia revenues grew dramatically, mainly due to strong development in China. Moncler had an IPO on the Milan Stock Exchange in December 2013.

A global luxury fashion online platform that sells products from over 700 boutiques and brands.

Region: United Kingdom
Industry: E-Commerce
Year: 2016
Investment Size: More than US$50 million
Co-investment Group: IDG Capital, Temasek, Eurazeo and others

Farfetch had the potential to become the leading fashion marketplace in several key regions, including Europe and the U.S. because of its innovative technology, business model and strong management team. Although the company was relatively unknown in China, it had a huge opportunity there, because of the country’s rapid growth in fashion consumption and a dramatic shift from offline to online purchases. We recognized that Farfetch could become the leading source of information about overseas fashion brands in China, while also providing the largest global inventory of luxury fashion products to Chinese consumers.

IDG Capital encouraged Farfetch to invest more resources in China, which led the company to enlarge its team in Shanghai. We helped Farfetch set effective business goals and aided it with recruitment, business relationships and strategic partnerships.

During IDG Capital’s involvement with Farfetch, its valuation increased dramatically. 

Mergers & Acquisitions

International Data Group is the world’s leading technology media, data and marketing services company with US$582 million revenue in FY15 (excluding its venture capital business).

Region: United States
Industry: Technology media, data and marketing services, venture capital
Year: 2017
Investment Size: Over US$1 billion
Co-investment Group: IDG Capital as lead investor; China Oceanwide, China Everbright, Bank of China Group Investment as co-investors

1) Acquire IDG brand names and licenses globally

2) Achieve significant cost savings by restructuring. Help the technology media and data service businesses increase their market share in China

3) Target company’s valuation multiples to be significantly lower than comparable domestic companies, with potential to exit in A-share round for multiple arbitrage

Identify acquisition target by utilizing our global platform, ensuring regulatory approval from relevant government agencies. Lead the strategic negotiation process for co-investors and design the innovative deal structure for acquisition and post-deal integration.

Acquisition was successfully completed in January 2017 for the VC assets and in March 2017 for the non-VC assets. The second-phase merger process has been launched with an expected gross return within 3 years

LEDVANCE GmbH (previous OSRAM LAMPS) is one of the world's leaders in general lighting with almost 9,000 employees and 2 billion euros revenue in 2015.

Region: Germany
Industry: Advanced manufacturing
Year: 2016
Investment Size: Over €450 million
Co-investment Group: IDG Capital as general partner; MLS, Yiwu State-Owned Assets Operation Center, CZBANK Capital and China Everbridght Limited as limited partners

1) Achieve significant cost savings by value-chain integration and synergies from integration with MLS’s operation

2) Utilize industrial know-how and IPRs to improve MLS’s market position and gain immediate global presence

3) Target company’s valuation multiples to be significantly lower than comparable domestic companies, with potential to exit in A-share round for multiple arbitrage

Identify acquisition target by utilizing our global platform, ensuring regulatory approval from relevant government agencies, providing strategic guidance to MLS management during negotiation and integration

Acquisition was successfully completed in March 2017. Second-phase merger process has been launched with expected gross return within 3 years