- Zhejiang’s 90 million yuan investment more ‘systemic planning’ than ‘fortunate bet,’ state-backed VC director counters
- Founder Zhang Xue says January funding brings much-needed liquidity, paving way for post-championship demand surges
Zhejiang’s state fund injection has allowed superstar Chinese motorcycle entrepreneur Zhang Xue to “sleep better at night,” days after his upstart brand captured global attention with a historic motorbike racing victory.
Speaking during a livestream interview with China Entrepreneur magazine on the evening of April 2, the founder of Chongqing-based ZXMoto said a 90 million yuan ($13 million) investment from Zhejiang provincial capital early this year had materially changed the company’s outlook.
“With this funding, my ‘ammunition’ is relatively sufficient,” Zhang said. “I can be bolder — and sleep more soundly.”
Zhang became a national sensation after ZXMoto defeated established European and Japanese competitors to secure two wins in the World Supersport (WorldSSP) category, marking a breakthrough for a Chinese motorcycle brand on the global racing stage.
National sensation
His personal story — rising from a modest rural background and pursuing motorsports ambitions from the age of 19 — has further amplified public support at home.
State-run Zhejiang Province Venture Capital Group first contacted Zhang in August 2025 and completed a Series A financing round in January through two local funds, based in Hangzhou and Jinhua, valuing the company at 1.09 billion yuan.
Zhang praised the process as unusually efficient, saying negotiations took about three months and highlighting what he described as the province’s “very high efficiency in all aspects.”
Outside observers have framed the investment as a fortunate bet, given that ZXMoto’s world championship wins followed soon after the deal closed.
But Cheng Junhua, general manager of the VC firm, rejected that characterization in earlier remarks to local outlet Tide News, calling the investment part of a broader strategic approach rather than a stroke of luck.
“People think we were lucky, because we invested and two months later he won a world championship,” Cheng said. “But investment is systematic planning.”
He added that ZXMoto’s future valuation would “definitely exceed 1 billion yuan.”
No interference, but always present when in need
Notably, the investor has adopted a restrained stance toward post-investment involvement. “The best post-investment service is not to interfere,” Cheng said. “When the entrepreneur needs you, you appear in time. When he doesn’t, you stay out of the way.”
He added that his firm will not hastily push Zhang at this moment to relocate his business or shift part of its production to Zhejiang.
That stance contrasts with common practice in China’s venture ecosystem, where local government-backed funds often require portfolio companies to relocate factories or embed production within regional supply chains to stimulate local industry, generate revenue and create jobs.
Despite Zhejiang’s natural interest in anchoring ZXMoto’s manufacturing locally, Cheng said it was too early to push for relocation commitments. Zhang learned everything about motorcycles from components to complete vehicle development as an apprentice in Zhejiang from 2009 to 2012.
Market momentum appears to be validating investor confidence. Following the Portugal victory, consumer demand for ZXMoto motorcycles has surged.
According to Chinese self-run media outlet New Consumption Daily, a dealership employee in Hubei said orders had “exploded” in recent days. Delivery wait times have stretched to late May 2026 for the ZX500RR and as far as June or July for the ZX8200R, with a single-store backlog of more than 100 units.
