Chibo Tang
Over the past decade, we have witnessed China’s rapid transformation from being the low-cost factory of the world to the leading innovation and technology powerhouse it is today. China introduced the Greater Bay Area (GBA) region initiative in 2016, with a vision to drive integration across 9 mainland cities and the 2 Special Administrative Regions (SARs) of Hong Kong and Macau, emphasizing the growth of Innovation and Technology (I&T) sectors. At present, China’s GBA region is projected to be the largest and most influential Bay Area economy in the world, and this emerging opportunity is not one to miss.
At Gobi Partners, we are dedicated to supporting entrepreneurs in emerging and underserved markets. Gobi set its sights on the Hong Kong market back in 2016, when the startup ecosystem was still in its early stages. We have since become the exclusive General Partner (GP) of the Alibaba Hong Kong Entrepreneurs fund (AHKEF), nurturing six unicorn companies and more centaurs, positioning ourselves as the most active and influential venture capital investor in Hong Kong. As such, we have played a key role in the continuous growth of the local ecosystem, and are now setting our sights on the overall GBA region. Within the region, we believe there are 6 key sectors of opportunity: Artificial Intelligence (AI), Industry 4.0, Consumer, FinTech, Healthcare, and Sustainability.
The AI Sector has been identified as one of the most promising sectors to develop within the GBA by the Chinese Government. In Hong Kong and Shenzhen, local talent has grown steadily within top schools and university clusters, creating a robust workforce to support the sector’s development. To date, the GBA is home to 226 AI-related startups, and has contributed to a total value of over RMB 30 million in 2020, positioning itself as a global AI innovation hub. Hong Kong is also home to the largest AI startup by valuation — Sensetime.
The GBA is home to 226 AI-related startups, and has contributed to a total value of over RMB 30 million in 2020, positioning itself as a global AI innovation hub.
At the same time, the rollout of Industry 4.0 technologies will feature unique and important roles from each GBA city. Premier Li Keqiang initiated and continues to lead the 10 year development roadmap known as “Made in China 2025”, with a mission to transform China into a global high-tech manufacturing powerhouse across 10 key sectors by 2025.
In consumer, the GBA’s consumer retail market value is projected to double by 2025 with a steady increase in spending across the Guangdong province as well as the rest of the country. The GBA also has an additional advantage of being a key manufacturing base and home to many suppliers and Original Equipment Manufacturer (OEM) factories, creating opportunity for new brands and products to emerge.
When it comes to FinTech—and I&T as a whole—Shenzhen and Hong Kong are clear leaders in the region. With Hong Kong’s reputation as an international financial hub, and Shenzhen as “China’s Silicon Valley”, startups have an advantage in both financial and innovation resources. Gobi has helped to nurture at least three notable unicorns in the local FinTech space — Airwallex, WeLab, and Amber Group.
In the post-pandemic world, healthcare related sectors have also received a sharp increase in attention and investment. New policies have been continuously introduced by various GBA governments, including favourable policies to aid development and innovation. Notably, our portfolio company Prenetics has created a great impact during the pandemic. To date, the company has already administered over 3,000,000 COVID-19 tests worldwide and secured a multi-million-pound collaboration with Oxford University and Oxford Suzhou for Advanced Research (OSCAR) for Molecular Diagnostics to further develop their technology.
Finally, sustainability has also been an emerging trend since China announced its ratification of the Paris Agreement on climate change in 2016. Since that time, numerous policies and framework agreements have been released in favor of nurturing and developing new energy, new material and energy conservation, as well as the implementation of more rigorous environmental protection standards which promote further adoption of green and low-carbon production methods and lifestyles.
Altogether, we strongly believe that the GBA represents the most exciting developmental opportunity in China for the next decade or more. Entrepreneurs and investors everywhere should be looking for ways to capitalize.
About Chibo Tang
Chibo Tang, Managing Partner of Gobi has been investing in tech startups in China for over a decade. He is Head of Gobi’s Greater Bay Area (GBA) practice, and manages the Alibaba Hong Kong Entrepreneurs Fund (AHKEF) for which Gobi is the exclusive General Partner (GP). He has led numerous investments including Airwallex, WeLab, GOGOX, AutoX, Amber Group, Animoca Brands, Prenetics, OneDegree, Urban Revivo, DayDayCook, AQUMON, SHOPLINE, and SandboxVR.
Chibo is recognized in the industry as Silicon Dragon Venture Capitalist of the Year 2017, Top 25 Global Corporate Venturing Rising Star 2019, Top 10 Global Corporate Venturing Emerging Leader 2020, a member of Generation T Asia Tatler Tribe, and is an Advisory Council Member of the Asia Technology Entrepreneurship Conference.
Chibo received his B.A. in Applied Mathematics and Economics from Harvard College, and received his MBA in Finance from China Europe International Business School (CEIBS). Chibo began his career as Strategy Consultant with Monitor Group, focusing on ASEAN and MENA region, then spent time at Robert Bosch as Senior Manager of Corporate Strategy APAC. Chibo joined Gobi Partners in 2009 and is currently a Managing Partner based in Hong Kong.
