Investment Update: West Fountain Parallel Fund lead a series B round for Longcheer Technology
In March 2021, West Fountain Parallel Fund and Shenzhen Capital led the investment in Shanghai Longcheer Technology’s US$100 million Series B, followed by investors including Everbright Capital, Huaxu Investment, Jintaifu Capital, Skyrim Capital, Precision Capital. The existing shareholders include Xiaomi and Shunwei Capital. Longcheer Technology will use the funding to accelerate its deployment and advancement in intelligent terminal markets such as AIoT, strengthen the reserve of emerging technologies such as 5G, and consolidate its core competencies.
Established in 2002, Longcheer Technology is one of the world’s three largest Original Design Manufacturer (ODM) service providers. With its industry-leading independent design capability and technical level, it provides accessory design, R&D , production, service and other complete mobile terminal solutions to consumer electronics brands in smartphones and tablets, wearable smart devices, smart home, audio products, and VR/AR.
Dr. Du Junhong, the founder and chairman of Longcheer, said: "The 5G era has infinitely shortened the distance between people and people, people and things, and things and things. With the rise of new technologies such as AI, big data, and cloud computing, the space of smart products is getting bigger and bigger. Unimaginable concepts in the past, such as smart homes, autonomous driving, smart factories, and smart cities, are becoming reality. The "intelligence" across society not only brought the ODM industry new development opportunities, but also placed higher requirements on ODM manufacturers. Longcheer has the world's leading system integration capabilities and has taken the lead in AIOT fields such as smart wear, smart home, and AR/VR. In the future, it will also be smart Terminals are the industrial foundation. We will increase R&D in these new fields, develop into platform-based enterprises based on ODM business, and provide customers with better products and services."
West Fountain Parallel Fund stated: “As the pioneer and leader in the domestic ODM industry, Longcheer has always been in the top echelon of the industry with its superior R&D and quality control capabilities. Its core customers include Xiaomi, OPPO, leading domestic brands such as Huawei and Lenovo, as well as international giants such as Facebook, Amazon, Moto, and LG. Driven by the 5G wave, mobile phones, wearable devices and other fields usher in explosive growth opportunities. We believe that under the current leadership, Longcheer will continue to expand its market share in the next three years and achieve rapid growth."
As the lead investor in this round, West Fountain Parallel Fund and Shenzhen Capital Group are optimistic about the future growth prospects of Longcheer and will help Longcheer build an innovative platform with mobile communications, IoT and other intelligent terminals as the core, accelerating the industry growth.