Futeng Capital: Exploring New Paths in Technology Investment and Industry Deep Cultivation

How does AI Futeng Capital capture opportunities in hard technology through a reverse investment strategy?

In China’s capital market landscape, Futeng Capital is a name worth paying attention to. Founded in Shanghai with a state-owned background, this market-oriented, professional institution is entering a high-profile moment as its performance gradually emerges. From the integrated circuit new material company Yiswei Materials, to the listing of domestic GPU leader Mu Xi Co., and to the AI startup MiniMax, whose total market value has exceeded 350 billion Hong Kong dollars, this four-year-old investment firm is exploring new investment paradigms through its own practices.

Futeng Capital demonstrates a calmness in capturing certainty amid uncertainty. They are not only seasoned capital operators who understand the rules deeply but also strategists with strong conviction in China’s underlying technological logic. In their view, the essence of investment has never changed; what truly makes a difference is the courage to “pull the trigger” during cyclical fluctuations and the patience to deeply empower industries.

01

Reverse Layout: Discovering Value During Market Adjustments

By 2025, the IPO scale in Hong Kong stocks will return to the forefront globally, with MiniMax standing out as the most impressive. It issued at HKD 165 per share, and within two months of listing, its intraday high reached HKD 1,330, with a total market value surpassing HKD 350 billion. Turning to A-shares, domestic GPU startup Mu Xi Co. was priced at RMB 104.66 per share, with a peak of RMB 895 on the first trading day, a rise of over 750%. These companies have delivered high returns to investors, and behind them lies a common driver—Futeng Capital.

“We invested in many companies that were not widely recognized in the market two years ago,” says the Futeng Capital team. They attribute their success to reverse layout during market lows. At that time, the global economy faced multiple challenges, market sentiment was subdued, and many investment institutions chose to wait and see. However, Futeng Capital chose to heavily invest in China, focusing on undervalued, long-term valuable hard tech sectors. “Honestly, two years ago, most people lacked confidence in China’s tech innovation; they still used traditional PE logic to evaluate these hard tech companies.”

This reverse investment is not blind risk-taking but based on deep insights into macro trends and precise micro-project judgments. Futeng Capital believes that, in the cyclical fluctuations of capital markets, true value often appears when market attention is low. When most chase hot topics, valuation bubbles form; but when confidence in a sector wanes, it’s the best time for excellent companies to be undervalued and for investors to enter at reasonable prices. This strategy is key to their repeated success in picking dark horses. The team believes that the essence of investment is to earn “Beta.” Having experienced two waves of internet and mobile internet booms, AI now represents the third wave of “Beta” explosion. In this era of opportunity, short-term financial calculations are insignificant; what truly matters is “believing in the long-term value brought by technological innovation.”

Futeng Capital hosts the Shanghai Jiao Tong University Source Strategy Conference

Taking MiniMax as an example, two years ago, the large model field was seen by many as a money-burning black hole with unclear business models and cautious market sentiment. However, Futeng Capital believed that in the face of scarce top-tier assets, traditional valuation models are often lagging and cannot fully capture the exponential growth potential brought by disruptive technologies. This decision is not based solely on intuition but on a comprehensive internal investment strategy—closely following China’s “14th Five-Year Plan” and other macro policy directions, conducting in-depth research on potential companies, and locking in targets through circle-layer interviews and data analysis before market consensus is reached. This allows Futeng Capital to preemptively deploy, seize first-mover advantages, and provide deep empowerment during project growth, ultimately achieving excess returns.

“Our key to pulling the trigger is valuing people,” says the team. In their evaluation system, assessing entrepreneurial teams is always the core factor determining investment success. They categorize successful entrepreneurs into two types:

• Integrity-driven: These entrepreneurs have strong scientific backgrounds and solid technical skills, capable of efficiently transforming research成果 into commercial value. Xu Honglai, founder of Borui Kang, exemplifies this, with the team praising him as “a Tsinghua PhD, rigorous, meticulous, with strong execution, and never overpromising. His words are consistent, making him very trustworthy.”

• Business genius: These entrepreneurs possess sharp market sensitivity and insight, able to quickly combine technology with market needs and drive rapid product iteration. The Zhiyuan Robotics team is one example—they “have many ideas and can quickly implement them,” establishing barriers in fierce market competition.

“CEOs need to calm down and think, communicate with the team,” says Futeng Capital. Founders who can delve into their business, follow through on commitments, and demonstrate consistency are the ones they are willing to heavily invest in. This insight into people and precise judgment are key to continuously discovering high-growth projects.

02

Futeng Model: Three Ecosystem Systems Working in Synergy

Although Futeng Capital’s equity structure combines state-owned and private capital, it maintains a high degree of market-oriented flexibility. This model enables effective integration of strategic guidance, top-level resources from state-owned assets, and market vitality from private capital, forming a unique competitive advantage.

“Good investments depend on a few reasons: first, grasping national priorities, following the country’s lead, and aligning with Shanghai’s innovation drive,” the team candidly states. As a Shanghai-based market-oriented institution with a state-owned background, Futeng Capital naturally benefits from access to industry information and policy guidance, allowing it to understand the country’s strategic intentions in technological innovation and industrial upgrading more early and accurately, thus aligning investment directions with national development. However, it is not merely passive; they prefer to be pioneers, actively participating in cultivating and developing strategic emerging industries through market-oriented means. For example, early opportunities for Mu Xi and Borui Kang stem from deep exploration of Shanghai’s innovation soil and precise grasp of national strategic industries. By working closely with government departments, they not only gain policy support but also provide unique industry resources and development opportunities for invested companies.

Futeng Capital elected as one of the first partners of the Hong Kong University Entrepreneurship Angel Alliance

To achieve full coverage and deep empowerment across the entire tech innovation industry chain, Futeng Capital has built a distinctive three-ecosystem model. These modules work collaboratively to form a powerful investment ecosystem:

• Fund of Funds and S-Fund Ecosystem: Managing over RMB 44 billion, Futeng Capital oversees the Shanghai State-Owned Fund of Funds and the city’s first S-Fund (secondary private equity fund). S-Funds are key tools to address current exit difficulties in equity investment, especially under tightening liquidity, providing flexible exit channels and optimizing asset allocation. Through the fund of funds, Futeng Capital collaborates with top GPs, expanding project sources, and diversifying risks for better returns.

• Angel and VC Ecosystem: With extensive early-stage investment experience, Futeng Capital manages main VC funds and angel funds, collaborating deeply with top universities and medical institutions. For example, they co-established the Angel Future Industry Fund with Shanghai Innovation Finance Institute; set up the “Jiaoda Source Fund” with Shanghai Jiao Tong University to serve university成果转化 projects; and partnered with Shanghai Shen Kang Center for Clinical Transformation to establish the “Shanghai Clinical Transformation Fund,” focusing on incubating clinical translation projects from city hospitals. This model enables early discovery and cultivation of highly innovative projects, transforming scientific research advantages into industrial advantages.

• PE and M&A Ecosystem: During growth and M&A stages, Futeng Capital focuses on the “restructuring” strategy. With limited IPOs annually in the A-share market, acquiring excellent unlisted companies into listed firms is an important way to upgrade industries and invigorate the capital market. They have established large model funds, themed industry funds, and M&A funds for integrated circuit equipment and materials, aiming to consolidate upstream and downstream resources and build internationally competitive industry giants.

The second China Investment Futeng Cup Yangtze River Delta Clinical Transformation Innovation and Entrepreneurship Competition Opening Ceremony

The synergy of these three ecosystems makes Futeng Capital not just a capital provider but a comprehensive investment platform integrating strategic planning, resource integration, and industry empowerment. This model enhances investment efficiency and success rate, providing full lifecycle support for portfolio companies.

Futeng Capital signs strategic cooperation agreement with City University of Hong Kong

03

From Investment Firm to Industry Company

Futeng Capital’s goal is not just to be an excellent investment institution but to evolve into an “industry company.” This means they aim to go beyond financial returns and participate more deeply in the growth of portfolio companies and the construction of industrial ecosystems, becoming a driving force for industry upgrading and technological innovation. This long-term strategy is their unique approach to maximizing value.

Deep Empowerment Trilogy

Futeng Capital summarizes its post-investment empowerment as a “three-step”: find money, find people, find business. These three are interconnected, forming a comprehensive support system for portfolio companies:

• Find Money: During the toughest times, Futeng Capital not only provides its own funding but also leverages its extensive network and industry influence to help portfolio companies secure subsequent financing. Their endorsement and guidance can attract more external capital. For example, during the funding shortages of large model companies like MiniMax and Leap Star, Futeng actively introduced investors to support their continued development.

• Find People: Talent is core to enterprise growth. Futeng Capital uses its broad talent network to recommend suitable CFOs, CTOs, or operational talents, optimizing founding team structures and filling management and operational gaps.

• Find Business: One of their most distinctive empowerment methods is leveraging LP resources (such as SAIC Group, Donghao Lansheng) to directly bring orders and application scenarios to portfolio companies. Many projects within their portfolio are complementary, forming an internal ecosystem that supports each other’s business. For example, Mu Xi’s GPU can supply computing power for MiniMax, and Zhiyuan Robotics also needs large models. This ecosystem linkage enables portfolio companies to quickly open markets and accelerate commercialization.

CVC Innovation: Building Deep Industry Links

Futeng Capital’s layout in AI is exemplary, with innovative investment modes. They not only invest in model companies but also explore establishing computing power service companies, using “computing power for equity” to increase engagement and influence. This model converts computing costs into equity, reducing operational pressure for invested companies and creating a deeper利益共同体.

Additionally, they actively explore CVC (Corporate Venture Capital) model innovations. They collaborate with invested companies to set up CVC funds, deeply binding the industry chain and jointly exploring upstream and downstream opportunities, forming close cooperation like “you have me, I have you.” In the intelligent robotics sector, they co-founded a joint venture with Zhiyuan Robotics, working with Shanghai Airport Group, Yongda Group, Fosun Group, and others to address the “last mile” deployment of robots.

“Others exit after investment, but we stay tied to the companies,” says the team. This differentiated competitive strategy allows them to secure quality shares even when competing with top-tier institutions, leveraging deep industry insights and empowerment capabilities. Through CVC, Futeng Capital can participate more deeply in strategic decisions and business development, gaining not only financial returns but also building a strong industrial moat.

Futeng Capital participates in AVCJ Forum

04

Future Strategy: Deep Cultivation, Global Layout, Ecosystem Building

In the context of sluggish growth in traditional industries, capital is seeking new allocation directions. Futeng Capital believes that new productive forces represented by AI, semiconductors, biomedicine, and high-end manufacturing will be the major “Beta” over the next decade—core drivers capable of crossing economic cycles and achieving long-term value growth. Their future strategy aims to provide multiple certainties for industry and capital:

• Source of Certainty Projects: Leveraging market-oriented mechanisms and deep cooperation with top universities, research institutes, medical institutions, and industry giants, Futeng Capital can access high-quality projects earlier and more deeply than others. Their close ties with government, academia, and industry enable early involvement in cultivating national strategic emerging industries, securing scarce projects.

• Empowerment Capabilities: Beyond funding, they serve as strategic partners, providing comprehensive support through their “find money, find people, find business” model, helping portfolio companies overcome growth challenges. This empowerment increases success rates and ensures higher certainty of returns. They have a professional team of 80, half dedicated to post-investment management and industry empowerment, ensuring professionalism and efficiency.

• Exit Certainty: Exits are critical in equity investment. Futeng Capital offers diversified liquidity options through its product lines, especially S-Funds and M&A funds. S-Funds address liquidity issues, while M&A funds provide new channels for high-quality unlisted companies. This full lifecycle management reduces risks and improves capital turnover.

Futeng Capital’s investment philosophy is “portfolio investment,” not “betting on single projects.” They believe that scientific portfolio allocation can effectively diversify risks and ensure steady overall returns—an essential safeguard for crossing cycles. Looking ahead to 2026, they outline a clear future strategic blueprint, not only summarizing past successes but also making precise predictions of future trends, aiming to build a globally influential industrial investment group.

WAIC Futeng Special Session

Deep Cultivation in Tech, Strengthening and Deepening: From Investment to Industry Operations

Futeng Capital will continue to focus on AI, semiconductors, biomedicine, and robotics, deepening cooperation with leading portfolio companies. For example, China’s top brain-computer interface company Borui Kang has completed listing preparation; the large model Leap Star is in pre-IPO; and integrated circuit firm Shenghe Jingwei has passed the Sci-Tech Innovation Board review. Their goal is not only to fund companies to go public but to engage in industry operations and ecosystem building through CVC, providing strategic support and sharing industry growth dividends.

M&A and Integration, Replacing Birds with Dragons: Optimizing Industry Structure

With the current structural adjustments in capital markets, IPO pace has slowed, but opportunities for industry consolidation and M&A are increasing. Futeng Capital will leverage M&A funds to actively participate in “restructuring” strategies, integrating high-quality unlisted tech companies into listed firms for rapid industry upgrading and scale development. This not only offers new exit paths for portfolio companies but also injects vitality into the capital market. In key fields like semiconductors, such consolidation can create competitive industry giants and elevate China’s position in the global supply chain.

International Layout: Building a Global Tech Ecosystem

Futeng Capital is accelerating its international expansion, establishing a global fundraising, investment, management, and exit network. Beyond Hong Kong and Macau, they will explore investment opportunities along the “Belt and Road,” helping Chinese tech firms go global and attracting top international projects and talents to China. This international strategy is key to their broader development and China’s participation in global tech competition.

Futeng Capital meets with UAE Royal Family Members

05

Tech Confidence and Capital Market’s Mutual Drive

Futeng Capital’s confidence in China’s tech innovation stems from deep insights into the global competition landscape. They believe that the world’s tech rivalry has entered an era dominated by the US and China, with China already surpassing in some areas. This confidence is not blind optimism but based on China’s advantages in supply chains, talent reserves, scene applications, and pioneering spirit. The team states: “China’s decades of industrial foundation and supply chain system provide a solid base for innovation. Now, China is selling new energy vehicles, lithium batteries, and AI services, achieving a leap from low-end manufacturing to high-end tech, which is the cornerstone of technological confidence.”

MiniMax’s excellent market performance demonstrates China’s strength in large models, saving computing power and expanding applications. Borui Kang’s global leadership in brain-computer interfaces and Zhiyuan Robotics’ large-scale humanoid robot shipments also show China’s transition from “follower” to “racer” and even “leader.” The team shares an interesting observation: many top overseas university professors are willing to place projects in China because of higher efficiency, a more complete supply chain, and lower innovation costs. This indicates that China’s industrial advantages and market potential are attracting top global talents and projects. The “bringing in” and “going out” dual flow exemplify China’s tech confidence.

Capital markets amplify this confidence. Although IPO pace is currently adjusted, Futeng Capital sees this as a process of filtering out falsehoods. The A-share market cannot sustain large numbers of IPOs annually, so capital will focus more on top-tier companies with core competitiveness. This helps optimize resource allocation and guides capital toward truly valuable tech innovation firms.

With the successful listing of companies like MiniMax and Mu Xi, the perception of China’s tech innovation is being reshaped. These companies not only bring rich returns to investors but also deepen the market’s understanding of the growth logic and value creation of Chinese tech firms, especially in hard tech. When Chinese companies develop world-class technologies and products and gain international recognition, this mutual drive will accelerate China’s tech innovation growth.

Futeng Capital participates in the 2026 China Big Consumption Annual Gala and Forbes China Awards

06

Conclusion

“When the market is still searching for the next tech giant, we have already helped them find us through our industry platform.” The success of Futeng Capital lies in its precise vision and the courage to reverse layout. In the long run of tech innovation investment, this institution combines the rigor of scientists, the sharpness of industry veterans, and the mission of Shanghai’s tech innovation ambassador. It exemplifies “patient capital” and how to capture certainty amid uncertainty. “Be different in doing things, and the same applies to investment institutions,” says the team. In this era of big waves and淘沙, Futeng’s vision is unique: to become a respected organization that can deeply empower its portfolio companies. As the name suggests, “Futeng” combines “trust” (from the Book of Changes, often associated with sincerity) and “soar,” symbolizing trust and flight. With a mission of “incubation” and “taking off,” Futeng Capital is committed to advancing with China’s tech innovation in the starry sea of investments.

This article is supported by the China Big Consumption CXO Innovation Center.

Disclaimer: Brand Voice-related information is provided by the interviewees and not edited by Forbes.