Kaifu Lee of Sinovation Ventures Admited Investment in Bitmain

Sinovation Ventures, a China-based prominent investment powerhouse helmed by former Google China head Kaifu Lee, has announced its early involvement in crypto mining giant Bitmain’s Series A round funding.

According to Bitmain’s freshly released IPO prospectus, Sinovation Fund, one of the funds operated under Sinovation Ventures, was quite an early investor of Bitmain. It funded $12.5 million (calculation based on 125 mln Series A preferred shares multiply by $0.1 per share cost) in Bitmain’s Series A round to get a 1.13% stake.

Source: Bitmain’s IPO prospectus

The prospectus stated that the subscription of the Series A preferred shares was completed in two stages on August 17 and August 29, 2017. That means, Lee has laid his eye on the company early in 2017.

As a prominent computer scientist who used to serve Microsoft and Google, Kaifu Lee has made his mark in many ways, including founding tech-savvy investment firm Sinovation Ventures, which has invested in more than 300 companies.

In recent years, Lee has become recognized as an authority on artificial intelligence (AI), tracking promising companies in the tech space and looking into the future at where the tech is headed. That explains its early investment in Bitmain who has set its sights on AI in early days besides crypto mining. Lee said he’s eyeing on the company’s capacity in technology R&D and bulk production.

“It (Bitmain) is a company that dominates a fast-growing market. It is a perfect investment target.” Wang Jiaping, the investor’s executive director said.

As a senior blockchain technology expert, Wang believes the core business underpinning the Bitmain’s $10 billion valuation lies in the design and sales of bitcoin mining hardware, which makes the status quo and prospect of the company particularly clear, and its layout in AI field makes its future brighter.

“Bitmain’s IPO, drawing much attention, is expected to be the city’s third-largest tech float after Chinese smartphone maker Xiaomi Corp’s HK IPO of $5.4 billion, and that of online food delivery-to-ticketing services platform Meituan, which earlier this month raised $4.2 billion.” Said Lee in his weibo (Twitter-like social media) where he has over 50 million followers.

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