Chinese motorcycle manufacturer ZXMOTO makes history with its first double victory in the World Supersport (WorldSSP) category at the Portuguese round of the Superbike World Championship. [Photo/ZXMOTO]

A 90-million-yuan ($13.1 million) investment by Zhejiang State-backed venture capital has drawn significant attention after motorcycle racer-entrepreneur Zhang Xue surged to global prominence just months later.

In January, Zhejiang Venture Capital led a Series A round in Zhang's startup, valuing the company at 1.09 billion yuan. Two months on, Zhang claimed a world-class title, thrusting both the founder and his backers into the spotlight.

According to Zhejiang Venture Capital's general manager Cheng Junhua, the deal was driven by a clear investment logic: Invest in people. Despite early-stage losses and an unproven product, the firm moved quickly — from first contact in August 2025 to final approval by that December — after extensive due diligence.

The team assessed not only Zhang's technical expertise and racing background, but also his leadership, supply chain management capabilities, and long-term vision. His hands-on engineering skills and commitment during a financial crunch — when he raised funds to pay staff — proved decisive.

While China's motorcycle sector faces modest growth and intense competition, investors saw potential in high-end manufacturing, global expansion, and Zhang's R&D-heavy strategy. The company is currently developing multiple models, positioning itself for future growth.

Beyond capital, Zhejiang is seeking to better integrate the firm into its industrial ecosystem, aiming to strengthen the province's high-end motorcycle supply chain.

The investment reflects a broader shift toward long-termism in State capital — backing hard-tech innovation and founder-driven growth. With momentum building, industry insiders now see a potential IPO before 2030.

Racer-entrepreneur Zhang Xue. [Photo/ZXMOTO]