Chinese venture capital firm BA Capital thrives in niche consumer markets

BA Capital, a Shanghai-based venture capital firm, has grown to manage $1.38 billion by focusing on niche consumer markets. This includes investments in blind box toys and jewelry, as well as sectors like nighttime and silver economies. Despite weak overall consumer spending in China, BA Capital is finding success in smaller cities and traditional brands. The firm was founded in 2016 by David He Yu and Michael Zhang Peiyuan, who identified opportunities in experience-driven and efficiency-driven businesses. While China's retail sales rose 4.8% in October, the consumer price index increased only 0.3%, indicating weak demand. BA Capital's strategy contrasts with broader market trends, as it continues to thrive in specialized sectors.