Hyperchain close 1.5 Billion Yuan B-round, the largest single funding among Chinese startups
It is reported that leading investor of this round of financing is Xinhu Zhinao Investment, which is a wholly-owned subsidiary of the A-share listed company Zhejiang Xinhu Zhongbao Investment Management Partnership (SH:600208). Other investors include SDIC Hi-tech, Ideal International, Lanshi Investment. Yonghao Investment, Jingzhe Investment, Huirenwenqu Investment, etc. The total investment will exceed RMB 1.5 billion, which is by far the largest single financing event for the domestic blockchain industry.
According to public disclosure, the leading investor, Xinhu Zhongbao, invested a total of 1.23 billion yuan on Hyperchain in April and May 2018, which means the valuing of Hyperchain doubled during the period. This move actually promoted the Shanghai Stock Exchange to question the justification on May 28. Two days later, Xinhu Zhongbao replied as followed:
Among them, for the short-term interest chain technology valuation from 500 million to 150 million yuan, Xinhu Zhongbao said in the reply:
“The valuing increase is indeed substantial. This is a business judgment made by the company and other co-investors based on the general situation of Hyperchain. There is a premium risk that income cannot be matched with valuation.”
Xinhu Zhongbao stated that the capital increase does not constitute the acquisition of Hyperchain. After the funding, the founder team is responsible for strategy formulation and daily operations. As an important strategic shareholder of the company, Xinhu Zhongbao will provide all-round support for the development of Hyperchain.
Li Wei, CEO of Hyperchain, said:
“We will take the funding as an opportunity to further enhance our leading position in the technology field. Meanwhile, we will start building ecosystem in the blockchain industry, achieving blockchain + in several areas such as finance, medical care, energy, trade, logistics, and government affairs, giving full play of blockchain as the underlying supporting protocol. We will serve the real economy and solve the financing difficulties of SMEs through blockchain technology.”
Founded in 2016, Hyperchain is now a leading blockchain enterprise in China. The core team members are from Zhejiang University and Chen Chun, the Scholar of the Chinese Academy of Engineering, serves as the chairman. The core competitiveness of the company is independent blockchain protocol, or Hyperchain platform. This platform ranks first in the technical evaluation of many large and medium-sized financial institutions and is among the first batch to pass the standard test by the Ministry of Industry and Information Technology and the Institute of Information and Communication Technology.
The main customers of Hyperchain includes China UnionPay, Everbright Bank, Industrial Bank, etc. Applications include the financial instruments, ABS and accounts management. In 2017, the company realized revenue of 1.864 million yuan and net profit of minus 152.174 million yuan.