Wang Donghui, co-founder of Ameba Capital, poses for a photo in Hangzhou, Sept 21, 2016. [Photo provided to chinadaily.com.cn]

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Frontier technologies, the next big leap forward

Beijing is China's Silicon Valley, says co-founder of billion-yuan fund

Chic. Unicorn locater. This is what Wang Donghui, the co-founder of Ameba Capital, is probably best-known as in China's venture capital circle.

The former chief financial officer of Kingsoft, the country's leading antivirus software and internet service company, has made a successful transition from an executive to an angel investor.

He is best-known for investments that Ameba Capital, the China-focused venture capital firm he co-founded in 2011, made in three startups which later turned out to be unicorns, or companies with $1 billion valuations or higher, based on fundraising.

The average return on investment for Ameba is currently 20 times, just five years after its launch.

Now Ameba Capital has completed its second round of funding by raising 700 million yuan ($105 million), bringing the firm's total asset under management to 900 million yuan.

The lion's share, or 40 percent of the second round, will be invested in the Software as a Service (SaaS) industry, Wang told chinadaily.com.cn.

SaaS means that software and data are hosted in remote servers and delivered on users' demand.

The digitalization of the country's enterprises means there is a high growth potential in the industry.

"Compared with China, the US sector is dozens times bigger. This is mismatched since China's GDP is about 60 percent of US's," said Wang Donghui, who looked chic when he met reporters in Hangzhou recently.

Wang claimed that in corporate internet, China lags the United States by more than 20 years. "China's consumer internet developed much faster than corporate internet."