B-B Capital Group, a six-year-old venture capital group made up of Facebook co-founder Eduardo Saverin and veteran capitalist Raj Ganguly, has been doubling China over the next few years as it allocates $500 million to $1 billion of its funds to Chinese technology companies. In an interview with TechCrunch, Ganguly said that B Capital is after China’s enterprise software suppliers, a region that has seen “explosive growth” but is still only a fraction of the size of the Sash market in the United States, ” Ganguly said in an interview with TechCrunch.
He added that the idea that Chinese companies are reluctant to use software is “extremely backward thinking”. He added that the idea that Chinese companies are reluctant to use software is “extremely backward thinking”. One energy boost to China’s B2B companies is surpassing labor costs.
For example, B Capital is hunting for software that can make labor and business activities more productive and give companies a competitive edge in the future. Covid-19 accelerated shifts, as well as digitized companies proved more stable in the face of the barriers posed by the epidemic. B Capital is able to discover what initiatives are needed for an intimate partnership with Boston Consulting Group, which has a raft of clients ranging from healthcare, finance to the digitization of transportation.
These larger corporations understand that “their internal technology cannot be the only solution and they need to look externally and be prepared to partner with early-stage, high-growth or late-stage technology companies,” Ganguly advised. They are more interested in paying for the software than scrappy, cash-strapped startups. B Capital began deploying capital to China earlier this year and has already closed three contracts. It is phase-agnostic – though growth-stage startups focus – and plans to back 15-20 projects in China in the next few years.
It has about 15 investment and operating employees based in Hong Kong and Beijing. It has about 110 employees worldwide. Ganguly declined to name his Chinese investors at this stage, but said they included a biotech company, an automotive parts business and an e-commerce enabler. By acquiring the skills of BCG, the biotech company is learning how it can bring real drugs to market faster. And the automotive business is similarly working with BCG to determine its pricing and market strategy.