Core Viewpoint - The article discusses the success of XVC, a venture capital firm, highlighting its impressive performance and unique investment philosophy, particularly in the context of the Chinese venture capital landscape [5][6][7]. Group 1: XVC's Performance - As of September 30, 2024, XVC reported a total investment cost of 3.78 billion RMB and a book value of 7.68 billion RMB, achieving a gross internal rate of return of 25.02% [5]. - XVC's main fund ranks first globally among VC funds established in 2019 within the 250-499 million USD category according to Preqin [6]. Group 2: Investment Philosophy - XVC does not position itself solely as a consumer fund; instead, it aims to find opportunities that leverage technology and insights to create great products [6][7]. - The firm emphasizes a "research-driven" approach, combining thorough industry research with rapid decision-making, allowing them to act quickly on promising opportunities [12][14]. Group 3: Notable Investments - XVC's early investments in standout consumer brands like Bawang Tea Princess and Laifen have been pivotal, showcasing their ability to identify and support high-growth companies [6][7]. - The investment in Bawang Tea Princess was completed within a week, demonstrating the firm's capacity for swift decision-making in a fast-paced market [12]. Group 4: Market Positioning - XVC was established in 2016 during a significant wave of new fund formations in China, coinciding with the rapid growth of the Chinese economy, which has shaped its investment strategies and opportunities [7]. - The firm faces challenges in being perceived primarily as a consumer-focused fund, which can limit its engagement with tech-oriented entrepreneurs [80]. Group 5: Future Outlook - XVC views its current stage as early, with aspirations to invest in future giants akin to Alibaba and Tencent, indicating a long-term vision for growth and impact in the venture capital space [83].

Group 1 - XVC has achieved outstanding performance, with a total investment cost of 3.78 billion RMB and a book value of 7.68 billion RMB, resulting in a gross internal rate of return of 25.02% as of September 30, 2024 [1] - XVC's main fund ranks first globally among VC funds established in 2019, according to Preqin [1] - XVC is not solely a consumer fund; it aims to find opportunities that leverage technology and insights to create great products [2][3] Group 2 - XVC was established in 2016, coinciding with a significant wave of independent fund formations in China's venture capital history, known as "VC 2.0" [2] - The firm emphasizes a research-driven approach, conducting thorough industry scans to inform investment decisions [5][6] - XVC's investment strategy includes rapid decision-making, with examples showing that decisions can be made in as little as one day [6][7] Group 3 - The firm has invested in notable companies like Bawang Tea Ji and Leifen, which are seen as exemplary cases of their investment philosophy [1][2] - XVC's founder, Hu Boyu, emphasizes the importance of understanding structural changes in the market, such as the rise of social media and its impact on consumer behavior [8][11] - The firm believes that research and quick decision-making can coexist, allowing them to capitalize on emerging opportunities [6][9] Group 4 - XVC's investment philosophy includes a focus on "sniping," which means targeting the most promising opportunities within a sector rather than spreading investments too thinly [23] - The firm prioritizes understanding the market and the specific conditions that can lead to successful investments [25] - XVC's approach to team dynamics emphasizes maintaining a small team to reduce communication costs and enhance decision-making efficiency [42][47] Group 5 - XVC faces challenges in being perceived primarily as a consumer-focused fund due to its high-profile investments, which can overshadow its other achievements [58][60] - The firm is actively working to diversify its portfolio and demonstrate its interest in technology-driven projects, despite external perceptions [61][62] - XVC's long-term vision includes aiming for significant future successes, comparing its current stage to an early phase in its development [63][67]