Brinc raises $1.5M for new China focused Accelerator Training Business
Brinc has raised $1.5M USD in a pre-seed round for a new business spin out: Brinc Accelerator of Accelerators (Brinc AOA). Its focus is developing, and operating training programs around China for existing and new incubator, accelerator and investment companies. The goal in 2019 is to run 4 training programs educating over 100 accelerator programs.
Brinc has been piloting this project for the last 18 months and has already run 3 training programs in combination with various China government entities and trained over 75 incubator and accelerator programs. The Brinc team in China is now working with a number of those programs to improve their ability to operate programs, support their value adds to teams, and scale.
Brinc’s AOA business model is to provide fee-based training to incubators, accelerators, and investment companies then tie up longer-term relationships through accelerator associations and obtain equity alignment with their startups and programs. Ultimately our goal is to help improve the quality of startups in China and to generate more opportunities for follow-on investment through future funds that are brought online and through syndication through China’s venture capital ecosystem, which is one of the fastest growing/largest in the world.
The China market is ripe for disruption with a unicorn born every 3.8 days. Just last year China produced 97 unicorns making it world’s second largest “incubator” for unicorns in 2018.
In 2018, Transportation & Space (12 unicorns on average) and AI & Robotics (7 unicorns on average) are the industries that generated the most unicorns. Additionally, the rise of Retail & Consumer, Fintech, Education, Logistics, and Tourism were also noteworthy.
In terms of cities leading the creation: Beijing had 13 new unicorns with a total valuation of $37.16B USD. Followed by Shanghai and Hangzhou which produced 4 unicorns and 3 unicorns. Although there are only 2 unicorns in Guangzhou, the total valuation of the 2 companies was $5.7B USD which is higher than the total valuation of the 3 unicorns in Hangzhou.
China the world’s second-largest economy had a total of 186 unicorn start-ups last year, with a combined valuation of more than 5 trillion yuan (US$736 billion).
Brinc AOA’s pre-seed round is being led by our strategic investors Artesian & Animoca Brands: Artesian Venture Partners (AVP) is Australia’s largest and most active early-stage venture capital firm with over $250M FUM. Artesian has a unique, highly scalable, diversified portfolio approach to early-stage venture capital investments, targeting both financial and strategic returns. Artesian invests in start-ups at seed, angel and growth stages in Australia, China and South East Asia. Artesian partners with leading accelerators, incubators, angel groups and university programs to develop a pre-screened and de-risked pipeline for larger later stage investments from its own late stage funds and also facilitates additional direct investments from its Limited Partners (LPs).
Artesian is currently also backing Brinc’s HK Accelerator programs and Brinc and Artesian have already worked together on over 30 startup deals over the last 12 months.
Animoca Brands (ASX: AB1) leverages gamification, blockchain, and artificial intelligence technologies to develop and publish a broad portfolio of mobile products including games such as The Sandbox, Crazy Kings, and Crazy Defense Heroes as well as products based on popular intellectual properties such as Garfield, Snoopy, Thomas & FriendsTM, Ever After High and Doraemon. Animoca Brands is also the exclusive China distributor of CryptoKitties. Animoca’s strategic backers include Intel Capital, IDG Accel and Sun Hung Kai. Animoca also owns & partners with various incubators and accelerators including Zeroth.ai (where it has controlling stake), Helix Hashgraph, Dappler Labs and notable corporate partners which include HTC, Atari, iClick Interactive etc across various projects. The Company is based in Hong Kong, Canada, Finland, and Argentina.
Animoca and Brinc will also be developing a gaming & e-sports vertical with the support & training of Brinc AOA. Startups will receive an equity investment, intensive mentoring, and connections to the top sports and e-sports business executives, sponsors, game developers, publishers, marketers, and investors that are already within the network of Animoca Brands.
Incubators and accelerators are new but are rapidly growing to empower founders to launch and grow their startups in China. There are already over 4,500 incubators & accelerators and over 5,000 co-working spaces, which makes this one of the fastest growing startup ecosystems in the world.
We see a large opportunity to get early access to new deals & opportunities through our training programs. We will work with these programs to improve their output, support their value adds, enable them to support the capital lifecycle, and ultimately improve the quality of startups. Metrics for business success are higher in China than anywhere in the world
given the size of the market, with some Series A rounds being invested only when companies hit over 100 million users or tens of millions of USD in sales. With the Greater Bay coming online as the new innovative center for the world, we believe that there will be vast areas for investment. Brinc AOA will start from the Greater Bay Area cities then eventually expand to other cities including Beijing, Shanghai, Hangzhou. and more.
We’re excited to begin supporting the rapidly growing China startup ecosystem. We hope to connect and enable future unicorns (and Brinc Rhino’s — but more on that later) and ultimately support the shortening of the time it takes to create a new unicorn in China. Maybe in the near future we can shave this time down to just 3 days!
Learn more about Brinc AOA: https://www.brinc.io/aoa
Brinc is a hands-on global venture accelerator with programs in IoT & Connected Hardware, Drones & Robotics and Food Technology. Brinc has offices in Hong Kong, China, the Middle East, Europe & India from where it runs accelerator programs, provides supportive services and capital to help founders move quickly as they build, launch and scale their businesses. Brinc’s diverse portfolio of 79 companies comes from 28 countries, is 66.3% B2B and 33.6% B2C and have been selected from over 5,700 applications. One of Brinc’s unique value adds is its strong partner network of over 500 suppliers in the Greater Bay region of China, enabling Brinc to provide the best manufacturing channels for its B2C & B2B startups. Depending on the locations where the teams join — Brinc can write cheques of $25,000-$240,000 through its programs and follow on cheques up to $800,000 through its funds under management. Across all of Brinc’s seven programs operating in 2019, its goal is to surpass 100 investments — enabling founders who are transforming the way we live, what we eat, how we move & how we feel.