All angel investors are hedge
funds, but not all hedge funds are angel investors. Chris Hsu of Kilometre
Capital should be called an angel investor. He has provided early-stage funding
to some of the world’s leading startups. He has been the underlying engine of
growth for SpaceX and Spotify.
Mentorship for startups
Right from the day a startup is born,
it needs a mentor. Chris Hsu of Kilometre Capital mentored Elon Musk in
launching his SpaceX. SpaceX has now turned into the largest private company in
the world involved in space exploration.
Likewise, Spotify was a fledgling
startup in music streaming, an area where there were no competitors. But, the
startup needed a mentor because the idea was innovative. Mr. Hsu showed me the
right way to Spotify. This helped Spotify become the world’s leader in music
streaming.
Spotify gained a plum share
Spotify continues to be a market
leader in music streaming. With around 600 million users, it is a market
leader. Its 30 percent market share is twice that of its next-largest
competitor.
NASA’s biggest contractor
With a total valuation of US$180
billion, SpaceX is NASA's biggest contractor. Since Elon Musk found success
with his first rocket, the Falcon 1, the company has been making giant strides
in reusable rocket technology.
Startups get advocacy
Angel investors are there to
provide non-financial support. They keep the long-term interests of investors
in mind. But Chris Hsu is a hedge fund with a difference. This is
because Mr. Hsu has been a marathon runner. As a long-distance runner, he knows
how to win races.
Tech-savviness makes Chris Hsu a leader
Chris Hsu doesn’t claim to be a
giant killer in technology. Nonetheless, he is tech-savvy. His tech savvy has
made Chris Hsu a leader in angel investment. He finalized buyout transactions with his deep knowledge of China’s semiconductor,
gaming, internet, and technology markets. Here are some things that set
him apart from other angel investors.
Strategic consolidation in China’s technology market
Mr. Hsu has led and spearheaded
buyout transactions for strategic consolidation in China’s semiconductor,
gaming, internet, and technology markets. He played a significant role in the acquisition
of Spreadtrum Technologies and RDA Microelectronics.
Spread-trum Technologies - Tsinghua Unigroup Ltd, an operating
subsidiary of Tsinghua Holdings Co., Ltd., a solely state-owned limited
liability corporation funded by Tsinghua University in China, acquired
Spreadtrum, a leading fabless semiconductor provider in China with advanced
technology in 2G, 3G and 4G wireless communications standards, a deal which was
worth US$ 1.7 billion.
RDA Microelectronics–The US$ 900 million merger deal between Tsinghua Unigroup and RDA Microelectronics was closed by Chris Hsu and his hedge fund. RDA Microelectronics was an electronics manufacturing company that designed, developed, and marketed wireless systems-on-chip and radio-frequency semiconductors for cellular connectivity and broadcast applications.
Conclusion
Chris Hsu of Kilometre
Capital shares some characteristics with angel investors, such as providing
early-stage funding and mentorship to a large network of startups, including
SpaceX and Spotify. His tech-savviness helped in the strategic consolidation of
China's technology market. He can be called both an angel investor and a hedge
fund manager.
