Not every business has trouble raising funds in the down economy. Chinese sports clothing manufacturer Fujian Peak has tapped VC firms Sequoia Capital China, Legend Capital, and the investment arm of China Construction Bank, CCB International, for 400m yuan.
The funding will be used for R&D, brand promotion and talent introduction, according to Fujian, which is located in Quanzhou, Fujian province and makes everything from track suits and ski jackets to sports bags and basketball shoes.
Fujian Peak, founded in 1989, currently employs 3,000 people and sells into more than 5,100 outlets across China as well as into export markets. The firm expects to grow strongly in coming years, and it recently signed a multi-year sponsorship deal with US basketball team New Jersey Nets.
The Nets have a Chinese player on the team and in a bid to get the Chinese excited about NBA basketball, the club has translated its website into Chinese.
Sequoia Capital China, the Chinese arm of US VC firm Sequoia Capital, was founded in 2005 by Neil Shen and Zhang Fan. Shen recently said that it expects to do more deals this year as valuations for potential investments in China drop and become more reasonable. Its first China fund, worth $250m fund launched in 2005 and is now fully invested . Two other China funds have since been launched.
While its parent is based in Silicon Valley, Sequoia Capital China is not limiting itself to hi-tech investments in China. Indeed, it is currently focusing more on consumer-driven sectors, which are seen as best placed to benefit from the Chinese government's efforts to boost domestic consumption. Fujian Peak therefore fits well with that particular investment theme.