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English|How a Chinese Investor Discovered China’s First PLG Unicorn Lanhu( 五 )


At Lanhu’s financing press release, the company founder Ren introduced that there are 50 million registered companies in China and 20 million in the United States. “China’s cloud software industry boasts lots of opportunities if you look at how many enterprises there are.”
In 2020, China’s digital economy generated 39.2 trillion yuan (around US$5.7 trillion) and accounted for 38.6% of the country’s GDP, statistics from the China Academy of Information and Communications Technology. These numbers show that China is becoming a hotbed for digitalization with over 50 million small and medium-sized companies being potential customers of digital solutions that help them boost work efficiency and lower management cost.
Another trend that is worth noting is that Gen Z users who grew up with the Internet already available to them are becoming core members of enterprises. They as the end users will determine how China’s SaaS market will develop in the future.
Zhu’s investment strategy in the SaaS industry confirms such trends. He believes that software companies should first make a good product before looking at marketing. Software companies need to look at whether they have filled up an important gap on a chain, Zhu said. “Companies of different sectors in China are already using digital solutions to empower their business. They are using digital solutions in all aspects of their business operation and trying to achieve decision-making supported by digitalization. Lanhu is a PLG company with a good software portfolio. It will definitely succeed,” Zhu concluded.
(The article is translated and edited with authorization from the author @Lin Zhijia, please note source and hyperlink when reproduce. The original article can be found here.)
Translator: Garrett Li

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