XCOR Receives Funding From Chinese Venture Capital Firm

Lynx Mark I with strakes bonded. (Credit: XCOR)
Lynx Mark I with strakes bonded. (Credit: XCOR)

XCOR hasn’t announced this yet, but Haiyin Capital’s investment is listed on the venture capital firm’s website and was mentioned in a story by Fortune:

The trip is organized by Chinese venture capital firm Haiyin Capital, which just finished dispersing its third fund of $50 million into mostly U.S. tech startups like energy storage startup LightSail Energy, based in the Bay Area, solar tech startup 1366 technologies, located just outside of Boston, private space flight company XCOR Aerospace, in Mojave, Calif., and crowdfunding company AngelList (distributed offices)….

Haiyin Capital founding managing partner Yuquan Wang (pronounced “Yee-chwan”) uniquely straddles the U.S. and Chinese tech worlds; he teamed up with consulting firm Frost & Sullivan early on in his career and as a consultant helped China Mobile grow from almost nothing to the mobile juggernaut it is today. He started investing in both Chinese and U.S. tech startups about a decade ago.

Wang told Fortune in an interview that there are many promising young startups in the U.S. that can make really complicated high tech products, but have a problem reaching mass production. When startups are small and only at the R&D stage, their valuation is small and the big capital they need to get to the next level can’t be raised, he says. But they often need a big investment to reach that large manufacturing scale and to reach a big global market, which will eventually lead to a much bigger valuation. “It’s like a chicken-and-egg problem,” says Wang.

  • Hemingway

    Here is information on Haiyin Capital from Fortune magazine:

    http://fortune.com/2015/05/21/haiyin-capital-tech-startups/

  • windbourne

    Now, we need to stop the flow of anything classified to XCOR.
    They will be made to move that tech to China.

    Sad. Hopefully, CONgress will step in and block this.

  • Chief Galen Tyrol

    Your comments border on libel.

  • windbourne

    Libel my ass.
    Go read their investment strategy. They invest in western companies for their tech and then moves the manufacturing to China.
    What is libel in pointing out what the company itself says?

    More importantly, it is foolish for ANY western tech company to accept investment and more to move the work to China. Whenever that happens, the company is killed off by the Chinese gov creating their own companies that out and our steal the tech.

  • windbourne

    Libel my ass.
    Go read their investment strategy. They invest in western companies for their tech and then moves the manufacturing to China.
    What is libel in pointing out what the company itself says?

    More importantly, it is foolish for ANY western tech company to accept investment and more to move the work to China. Whenever that happens, the company is killed off by the Chinese gov creating their own companies that out and our steal the tech.

  • Chief Galen Tyrol

    There’s nothing certain this side of the grave, but I am 99.999% sure XCOR is not moving to China.

  • windbourne

    Part of the reason why we caught a spy before, is because they wanted to invest into a company in which we had ITARed equipment. I have NO doubt that there is plenty of ITARed equipment going on in XCOR.

    And China will do all that they can to steal the technology. Even if they do not move it to there, they will make sure to grab the plans.

    So no. I am hoping that the state dept steps in and nicks this in the bud.

  • Sam Moore

    Sounds like a job for the HUAC.

  • Chief Galen Tyrol

    Have you expressed similar dissatisfaction with the government of the United Arab Emirates bank rolling Virgin Galactic?

  • Douglas Messier

    No. There’s ITAR. No way US govt would allow it.

  • Paul_Scutts

    You’d certainly think so, Douglas. But, it does highlight a fundamental problem with current space tech development within the US. It’s not just XCOR, I feel that SNC Dream Chaser could also fall into this category, namely, can’t get local (US) funding but subject to ITAR restrictions. Real Catch 22. Perhaps, the US Government should think about establishing some sort of SpaceTech Fund to help assist affected developers.

  • windbourne

    Why?
    Does UAE have loads of spies in America?
    Are they stealing technology left, right, and sideways?
    Are they out to destroy America?
    Do they take technology back to their nation and then steal it from the company’s owner?
    The answer is NOPE.
    BIG DIFFERENCE.

    Once you have dealt with Chinese spies, let me know how you feel then?
    Or once you find that the investor wants to know MORE about what he is buying. He will want plans, information, and guarantees. Guarantees that when THEY decide that the company is not viable, that they can get hold of assets. And one thing that I found out, was that they can take anything out of the nation, regardless if it is ITARed or not.
    Basically, you have to deny total access to all of the assets, which they will NOT allow.

    Oh, one other thing. They will want your HR information. They want to know who works there. If they can not get DIRECT access, then they can buy it from the employees.

    Sorry, but IMHO, you guys are making a HUGE mistake in this one.

  • windbourne

    Nice thought, but look at what I replied to Chief down below.
    One thing that I found out is that it will be easy for Chinese spies to walk past ITAR. Once they get access to a company, they have access to the physical equipment, networks, and even HR information (this is the WORST).
    And when we would not allow a Chinese spy to invest into our start-up, he offered us a million to take the equipment out of the nation for 1 week and bring it back. He said that it was trivial to get a BUS out of the nation, and bring it back in within a week.

    Right now, America’s security is badly broken.
    W really fouled things up, and O has not really improved it.
    At this time, the State dept SHOULD deny this investment.
    Do not get me wrong. I want to see investments into XCOR and for them to succeed.

    But, if you doubt what I have said about the Chinese spies, then look up how the Germans did with TransRapid going to China and being promised that their tech would not be compromised.

  • windbourne

    XCOR, like SNC, can get funding from Europe. ITAR allows for that easily.

    However, I agree with you about starting a space tech fund.
    We did the same for AE, and it makes sense to do that, though we saw much of that ran off to China due to not putting restrictions on it.
    With this, we need to put restrictions on keeping the tech within the nation, or at least with our allies.

  • mzungu

    Seriously?

    A country that send astronaut to their own orbiting space station with a rover on the moon, and been flying hypersonic ICBM since the 70’s, been building all sorts of liquid and solid engines… and so good at hacking Lockheed’s computer, and with the money to buy anything from Russia,,,,, is interested in stealing this back-yard operation that is going no-where old-tech?

  • mzungu

    Buying some shares of Boeing stock, don’t mean you get access to the drawing cabinet. Do anyone here actually use their head?

  • windbourne

    Notice the fact that XCOR does not talk about their tech?
    Why exactly do you think that they have only old-tech?

    Keep in mind that SpaceX started out with tech from the 90s, improved it, and now is developing all sorts of new technology, that is way beyond things that have been done.

  • windbourne

    Owning 33% of a company gives you a LOT of access.
    And start-ups do things differently.

  • Douglas Messier

    Seriously?

    Brave words from someone cowering behind an alias. A shame really.

  • mzungu

    Err…2/3 of the ppl commenting here is with an alias.

  • mzungu

    We been burning Kerosene and LOX for 50, 60 years…That’s old, even for my age.

  • XCOR does have some new tech such as small hydrogen fueled engines that could serve as low cost replacements for the RL-10, lightweight aluminum engines, and pump-fed engines using reciprocating, I.e., piston pumps rather than the complex high maintenance turbopumps.

    Bob Clark

  • Douglas Messier

    You should be aiming higher than that. If u want what u clearly think is ur clearly superior intellect to be taken seriously. But u cower with the rest of them behind the wall of anonymity.

  • Chief Galen Tyrol

    If Galen Tyrol isn’t a real name, how do you explain my Wikipedia page?

  • mzungu

    I am not crying over it. Not like I am famous like you, that my name would add to the credibility. I like to keep my online persona separate to my professional and personal life.

    Perhaps you should point out what I wrote that don’t make sense or wrong, instead petty thing like a on-line persona name when everyone online and here uses an alias.

  • mzungu

    Well Sir…. I guess you and your very hot AI girlfriend are the Harbinger of Doom that Elon Musk warn us about… 😛

  • Douglas Messier

    No it’s just an awesome photo from a very cool thing I had the chance to do. everyone in the hangar had a blast when they were putting on spacesuits.

    As for the rest of it I would barely know where to start. And I won’t waste my time trying.

  • Chief Galen Tyrol

    So Say We All.

  • mzungu

    You “barely know where to start” sounded right & appropriate. 😀

  • mzungu

    Do they(Haiyin) really own 1/3? kind of interested where u get that number…

  • windbourne

    Actually, if you want to find me, google will produce it quickly.

  • windbourne

    That is just part of xcor rocket. There is a lot more involved.
    BTW, Dr. Goddard was flying gas/lox almost 100 years ago, and did kerosene/lox about 90 years ago. However, Xcor probably has the most work on methane engines. Likewise, they may have unique ways of doing their engines and other tech.

  • windbourne

    Hmm, sometimes, I wish that I had more time so that I would post better.
    I, and I assume the public, does not know what the % is. My point was that if xcor gave them a lot, then haiyin may put pressure on them for various information.

    And typically when somebody has LARGE amounts of stock, most CEOs will have an open door policy for them. More importantly, haiyan makes no bones about the fact that all their investments in western high tech is to move the tech to china’s control.

  • mzungu

    No, no CEO is giving away their IPs, life and blood, just because someone holds some large stakes in the company. As much as I don’t like XCOR’s biz plan and technical plan, I don’t think Jeff G. or any CEO is that stupid.

    That same investment firm has a stake in flying car, and jet packs in their portfolio….which give me a good laugh.

  • mzungu

    Actually, same can be said about me, or any alias ….

  • Douglas Messier

    Uh huh.