JunHe, as the exclusive corporate legal counsel for 4 Paradigm, represented and advised the company on its Series C financing. The amount financed under the Project was over CNY¥ 1billion (the “Project”).
In this series of financing, China Reform TUS Fund and Baoli (Hengqin) Capital were the lead investors; BOCOM International, ABC International, CITIC Securities and Three Gorges Capital were co-investors, and the existing investor Sequoia Capital was the follow-on investor.
This Project marks the second time 4 Paradigm has been valued by top professional investors since its Series B+ financing co-invested by ICBC, BOC and CCBC in January 2018. 4 Paradigm has now become the only pioneering enterprise co-invested by the “Big Five Banks” in China.
As a China-based AI firm with global reach, 4 Paradigm is dedicated to empowering enterprises with AI strength. The core product, “4 Paradigm Oracle”, is an AI system focused on assisting enterprises to build their own production systems based on AI, empowering them to self-develop AI applications, optimize operational efficiency and improve decision-making. In the AI Industry, 4 Paradigm has held a leading position by strengthening its techniques and providing services to a large number of enterprises in the fields of finance, medical care, government, energy, resources and retail. The total assets of the financial institutions served by 4 Paradigm is above CNY 50,000 billion.
JunHe, as the exclusive corporate legal counsel for 4 Paradigm, provided the following legal services: designing the transaction structure, drafting the transaction documents, participating in negotiations and the finalization of the transaction documents.
This was a complex project in many ways: 1）most of the investors were from a state-owned background and communication and negotiations were difficult and complex. Certain issues needed to be negotiated and discussed with the investors separately in order to safeguard 4 Paradigm's interests to the greatest extent; 2）the Project timetable was tight, the negotiations and finalizing of the transaction structures and transaction documents needed to be completed with multiple investors within a very short period of time. In the primary session of drafting the transaction documents, JunHe’s team had multiple discussions with investors over the design of the transaction plan; in the finalizing sessions of the transaction documents, JunHe’s team conducted rounds of negotiations with investors, and then ultimately assisted 4Paradigm to complete the Project successfully. With vast experience in similar complex projects, the expertise of the team at Jun He was highly recognized by 4 Paradigm.
The lead partner in the Project was Mr. JIANG, Wenjun (Kelvin).