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VCSEL Leading Manufacturer RAYSEES Completed Nearly 100 Million Yuan B1 Round of Financing, Cornerstone Capital Participated



Recently, RAYSEES, a leading provider of VCSEL chips and optical solutions in the industry, has successfully completed nearly 100 million yuan in Series B1 financing with participation from CoStone capital.

RAYSEES is a deep-tech company that specializes in the semiconductor optical chip field, focusing on providing global leading VCSEL chips and optical solutions for customers in the fields of intelligent driving, consumer electronics, intelligent sensing, and medical healthcare.

Founded by a team of returnee doctors, RAYSEES has team members with extensive backgrounds in the optoelectronic semiconductor industry and years of experience in large-scale industrialization. RAYSEES possesses internationally leading core technologies in chip design, optical integration and packaging, algorithm development, and photonic system integration optimization. RAYSEES has also established a complete industry chain of "chip + optics + applications," launching a series of self-developed high-performance VCSEL chips and integrated optical products. They have filed for over 150 domestic and international technical invention patents and serve more than 100 global customers.

Regarding the investment rationale, CoStone capital stated that RAYSEES operates in a large VCSEL industry space, and combined with their stable team, high product barriers, and strong technical capabilities, they have a powerful advantage.

VCSEL has expanded from the data communication market to the 3D sensing consumer market and will continue to deeply explore application potential in emerging markets such as the automotive market and medical healthcare. According to estimates, it is projected that by 2023, the shipment volume of VCSEL will increase from 652 million units in 2017 to over 3.3 billion units, with a compound annual growth rate of 31% from 2017 to 2023. Upstream and downstream of the semiconductor industry chain, including chip design, equipment suppliers, epitaxy and foundry factories, and system integrators, are all positioning towards VCSEL.

In terms of specific product layout, RAYSEES has achieved product layout and breakthroughs in three major directions: consumer electronics, automotive, and smart hardware:

- In the consumer electronics field, RAYSEES VCSEL chip products have entered the supply chains of major consumer electronics manufacturers in Japan and South Korea and have accumulated more than tens of millions of units in mass production, leading domestically.

- In the automotive field, RAYSEES has been continuously investing in the research and development of related products since its establishment. In 2022, RAYSEES successively obtained the AEC-Q102 automotive regulation certification and the IATF16949 international automotive quality management system certification. In early 2023, RAYSEES VCSEL products were integrated into BYD's vehicles, assisting their "Wings" series of cars in achieving intelligent driving at night. Meanwhile, the company has closely collaborated with domestic and foreign automotive LiDAR companies on next-generation VCSEL LiDAR projects.

- In the smart hardware field, RAYSEES actively promotes innovative applications of VCSEL technology in various scenarios. In addition to enabling Baidu's delivery robot to perceive its surroundings comprehensively, the company has also collaborated with a leading radar solution provider in the floor-sweeping robot industry to jointly launch the industry's first LDS solution based on VCSEL technology, which has achieved mass production of over one million units. At the end of 2022, RAYSEES' VCSEL products entered the supply chain of leading domestic projector brands and began mass production. Currently, RAYSEES also holds the highest market share in the VCSEL projection application market.

RAYSEES' vision is to make life more intelligent, safe, and beautiful with optical technology, aspiring to become a global leading provider of VCSEL chips and optical solutions. Since its establishment, RAYSEES has continuously received investments from top institutions due to its solid technical strength, efficient closed-loop capabilities in technology, production, and application, advanced management abilities, and leading performance among peers. It is believed that in the near future, RAYSEES will bring us more surprises and expectations.

The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.

Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.

Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.

Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.

These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.

For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.

So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.

At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across


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