The "Real Company" Investors Are Fighting Over in 2026: Understand These 10 Areas to Get Capital to Chase Your Investment

By Hu Huacheng, Founder of Zhihhe Island Group

At the start of 2026, A-shares greeted the new year with a series of gains, and market sentiment continued to improve. However, after intensive visits to 12 leading investment institutions and in-depth engagement with 32 potential financing companies by Zhihhe Island and the Brain Team of Investment & Financing Bay, we saw a stark contrast: on one side, many founders are running themselves ragged, exhausted and worn out, even with revenues exceeding hundreds of millions, still unable to secure a round of funding; on the other side, a few companies have broken through institutional barriers, with valuations soaring and multiple top-tier institutions vying for market share.

Many founders ask me: The market clearly has money, why isn’t it investing in me?

The answer is simple: in 2026, capital has changed, people have changed, and the underlying logic of the entire market has been thoroughly reconstructed.

First, the fundamentals of incremental capital have completely shifted. By the end of Q3 2025, insurance funds directly holding secondary market stocks reached 3.62 trillion yuan, officially surpassing the holdings of actively managed equity public funds. This means that in 2026, the biggest “big spender” in the capital market is no longer public funds chasing short-term rankings, but insurance capital with hundreds of trillions of long-term funds seeking absolute returns.

Second, the rules of the investment game have been fundamentally changed. The latest regulations from the China Securities Regulatory Commission explicitly include social security funds, insurance funds, and bank wealth management subsidiaries as “strategic investors,” with a minimum shareholding threshold of 5%. This rule directly ends the era of “short-term speculators” in capital, and future mainstream investors must be those who deeply participate in corporate governance and hold long-term positions—“patient capital.”

Third, the standards for measuring enterprise value have been completely transformed. The market has shifted from the “valuation repair” phase of the past three years to a new stage driven by “profitability.” The era of widespread valuation recovery has ended; only core assets with real performance and sustainable growth capabilities—“Core Asset 2.0”—can enjoy long-term capital premiums.

The era of flood-like capital infusion has come to an end, and the era of precise drip-feeding has officially begun. Investors are shifting from “financial investors earning from valuation spreads” to “strategic partners earning from company growth.” If you still cling to the old logic of “telling stories, drawing big pies, estimating valuations,” even with short-term profits exceeding hundreds of millions, you may still be shut out by mainstream capital.

Today, I will combine the latest market dynamics of February 2026, the investment strategies of top-tier institutions, and explain clearly to all founders: in 2026, what kind of companies are investors eager to invest in as “real companies”? Understanding this article will not only reveal the new aesthetic of capital but also help you find the core secret to attracting capital to invest in you.

Part One

2026 Investor “Aesthetic Standards”—Three Underlying Logics

Before listing specific track directions, all founders must first understand the “taste shift” of capital. The “real companies” that will be fiercely sought after by capital in 2026 all meet the following three core standards. These are the entry tickets for fundraising and the ballast stones for long-term enterprise development.

1. From “Story” to “Implementation”: AI Must “Make Money”

In the past two years, the AI track experienced a dramatic reversal—from the “big model craze” to the “application drought.” Countless companies secured funding based on “benchmarking GPT” stories but failed to establish viable business models, ultimately collapsing into bottomless pits of technical investment.

In 2026, the standards for evaluating AI have completely reversed. Yu Zongliang, Deputy General Manager of Sequoia Capital China, bluntly stated: “Without good AI applications, only investments without returns, the industry’s fragility will become very high.” Data from Zhihhe Island’s early 2026 institutional survey shows that 89% of top institutions prioritize “AI commercialization and implementation capabilities” as their top decision factor, a 42 percentage point increase from 2025.

Investors no longer believe in grand technological blueprints; they only believe in the business cycle of “investment—return—reinvestment.” No matter how advanced your AI technology or how high your parameters, if it cannot help clients significantly reduce costs or generate revenue, and cannot form positive cash flow, it will forever remain a laboratory exhibit and will not attract a penny from mainstream capital.

2. From “Involution” to “Quality Wins”: Say Goodbye to Burning Money, Embrace Free Cash Flow

Whether in new energy, consumer sectors, or hard tech, the core keyword for industries in 2026 is “counter-involution.” Over the past decade, many Chinese industries fell into vicious involution—“burning money for scale, low-price market share”—which ultimately diluted profits across the entire sector. Even leading companies lacked pricing power and resilience against cycles.

In 2026, capital has completely abandoned “scale-only” thinking, instead heavily favoring those who can survive industry reshuffles and hold pricing power—“quality winners.” We see that whether it’s capacity cleanup in new energy or market restructuring in consumer sectors, capital is retreating from companies relying on subsidies, low prices, and money-burning growth, and instead embracing industry leaders with rapid technological iteration, strong cost control, and stable gross margins.

For founders, in 2026, don’t just talk about “market share” or “GMV.” Free cash flow, net profit margin, and product pricing power are the real core indicators investors care about. Companies that can withstand cycles are those that can continuously make money, not those relying on money-burning to survive as “industry second-tier players.”

3. From “Financials” to “Governance”: Capital Wants a Seat at the Table

With the implementation of the new regulations from the CSRC on strategic investors, the minimum 5% shareholding threshold has fundamentally changed the relationship between capital and enterprises. In the past, financial investors were “hands-off,” earning from equity appreciation; but in 2026, long-term capital represented by insurance and social security funds seeks board seats, governance influence, and deep participation in decision-making.

In serving enterprises, we find many founders still stuck in old thinking: treating investors as mere “ATM machines,” unwilling to open up governance, unwilling to standardize financial systems, or even practicing family-style management and unilateral decision-making. But you must understand that insurance funds with hundreds of trillions of yuan in assets would rather miss a hundred good tracks than invest in a company with chaotic governance and opaque finances.

In 2026, companies favored by long-term capital will have clear governance structures, transparent finances, and a willingness to involve capital in decision-making. Capital is not here to seize control but to work with you to build long-term enterprise value. If you always keep investors out of the boardroom, no matter how good the track, you will never enter the core pool of long-term capital.

Part Two

Top 10 “True Company” Profiles Most Desired by Investors

Based on the 2026 investment strategies of top private equity firms like Fresh Capital, Rongshu Investment, and Sequoia, as well as the latest acquisition directions of leading insurance funds like Taikang and Ping An, we have outlined 10 types of “true companies” that make capital excited. These 10 directions are the golden tracks for 2026 financing. If your enterprise fits one of these, you have a chance to attract capital’s pursuit.

1. AI Companies with “Killer Applications” (Not just models, but scenarios)

In 2026, the biggest concern in AI remains: “Huge capital expenditure, where are the returns?” The arms race of large models has settled, and the core target for capital is vertical scenario applications capable of commercial operation.

True company profile: Not general-purpose model companies earning meager API fees, but SaaS companies deeply involved in finance, healthcare, legal, and industrial sectors, helping clients significantly cut costs and generate incremental revenue, thus forming a paid closed loop. Early 2026, capital hot picks like Zhipu and MINIMAX are not driven by technical parameters but by their ability to find replicable, scalable scenarios in government and finance, achieving rapid revenue growth and positive profit cycles.

For example, a legal AI company serving over 3,000 law firms domestically, providing intelligent case handling and compliance review systems, with a product conversion rate over 30%, renewal rate at 92%, and net profit surpassing 50 million yuan in 2025. Early 2026, it received joint investment from Sequoia China and Taikang, doubling its valuation from the previous round. This exemplifies the core logic of AI in 2026: only application breakthroughs can feed R&D and create a healthy commercial cycle.

2. Hard Tech Companies with “Independent Computing Power Infrastructure”

The US-China tech competition has entered deep waters. The US’s core advantage lies in computing power and storage technology, while China’s strength is in power and manufacturing. Under the national strategy of controllability, bottlenecks in computing infrastructure will bring long-term capital dividends.

True company profile: As domestic advanced wafer fabs expand, those filling domestic technological gaps—semiconductor equipment, advanced packaging, high-end chips, and computing network infrastructure—are poised for explosive growth. Rongshu’s 2026 strategy ranks this track as the “New Five Flowers of the AI Era,” with leading insurance funds like Taikang and Ping An making substantial cornerstone investments, nearly 100 million yuan each.

For founders, the key isn’t “storytelling” but “real implementation”—do you have mass-producible products, are you in the supply chain of top-tier companies, and do you have real orders and revenue? That’s what capital pays for.

3. Robots at the “iPhone Moment”

Deep integration of AI and hardware manufacturing has brought embodied intelligent robots into the “iPhone moment” of commercialization in 2026, making it one of the most explosive tracks.

True company profile: Not just simple robotic arms, but companies combining embodied intelligence tech to achieve large-scale commercial deployment in EV assembly lines, logistics sorting, 3C manufacturing, and commercial services. Their core value: solving labor shortages in manufacturing, greatly improving efficiency and precision, creating a positive revenue cycle.

Early 2026 signals are clear: leading embodied intelligent robot companies are pushing IPOs on A-shares and Hong Kong stocks, with institutions competing fiercely for early allocations. For example, a smart welding and assembly robot company serving BYD and Tesla achieved over 1 billion yuan in revenue in 2025, with net profit over 200 million yuan, and is now in the process of applying for the STAR Market, with over 20 institutions expressing strategic investment interest. The core of 2026 robotics: focus on real factory deployment, not just demos.

4. China Manufacturing Moving Toward “Global Pricing” (Core Asset 2.0)

In the past decade, A-shares’ “core assets” relied heavily on domestic demand and urbanization dividends. In 2026, a new “Core Asset 2.0” is emerging—leveraging technological innovation and globalization to capture global market pricing power.

True company profile: Companies that no longer depend on low-cost domestic OEMs but can sell high-value-added products globally, establishing local factories, services, and branding overseas. Especially in machinery, electrical equipment, and auto parts, those with global competitiveness and pricing power are becoming key holdings for long-term funds like insurance and social security.

A prime example is the global grid upgrade boom: accelerated renewable energy transition worldwide has increased demand for grid upgrades. High-end transformers, switches, and other core products are highly concentrated in leading Chinese firms, with high technical barriers and limited capacity expansion, leading to rising prices and high profit visibility. Several overseas-listed power equipment giants with over 60% revenue from abroad have been continuously accumulated by insurance funds since Q4 2025, with valuation recovery. In 2026, Chinese manufacturing capable of earning from global markets is truly a core asset.

5. “Quality Winners” in the Renewable Energy Cycle

The renewable energy industry has fully exited the era of disorderly expansion and reckless involution, entering a “quality wins” phase. In 2026, renewable energy is no longer just a hype track but a long-term dividend as the energy foundation of AI and electrification eras, following optimization of industry structure.

True company profile: Industry leaders with rapid technological iteration, extreme cost control, and core technological barriers in PV, energy storage, and power batteries; companies with breakthroughs in solid-state batteries, perovskite, and hydrogen, securing key orders from top-tier clients, will attract concentrated capital.

Early 2026, several solid-state battery companies completed new rounds of financing. One with pilot line mass production and energy density over 400Wh/kg secured orders from three leading automakers and raised nearly 1.5 billion yuan, with valuation up over 80%. For founders, in 2026, don’t just talk about “capacity scale”—capital cares about your technological barriers, cost advantages, and order certainty. Only “quality winners” that survive industry reshuffles will get long-term capital support.

6. “AI + Innovative Drugs” Undergoing Valuation Reassessment

Years of industry adjustment have positioned domestic innovative drug companies among the world’s top R&D capabilities. The industry is shifting from “generic innovation” to “global first-in-class” innovation. AI’s comprehensive empowerment has accelerated drug R&D cost reduction and shortened cycles, leading to a full valuation reassessment.

True company profile: Companies with top-tier R&D pipelines, mature overseas licensing capabilities, and positive revenue cycles; biotech firms leveraging AI for target discovery, clinical trial design, and compound screening—significantly shortening R&D timelines and reducing costs—are becoming key investment targets.

Early 2026, companies like ReboBio received cornerstone investments from insurance funds, signaling long-term capital recognition of domestic innovation. An industry analyst from a leading institution told us: “AI shortens R&D cycles by over 30%, reduces costs by 40%. Companies with real R&D strength and commercialization ability are now at valuation lows—best time for strategic layout.”

7. “Rare Cash Flow” Consumer Leaders

In 2026, China’s consumer market is generally stable, but industry segmentation has become extreme. Capital no longer funds “burning money for traffic” stories but prefers consumer leaders with sustainable “cash-generating ability.”

True company profile: Brands with strong pricing power, controllable channels, high cash turnover, and steady profit growth. For example, Mingming, the “largest bulk snack retailer,” listed in Hong Kong with a 69% first-day surge, attracting top institutions like Tencent, Temasek, and Taikang, because it optimized retail efficiency and achieved double-digit revenue and profit growth.

Emerging segments like pet food, pre-made meals, and health consumption are also hot. For instance, Qianwei Central Kitchen, a pre-made meal leader, has received over 40% of institutional research from insurance funds since Q4 2025. For founders, the core logic in 2026: improve efficiency in traditional industries, turn traffic into cash flow, and capital will naturally chase you.

8. Cyclical Leaders Benefiting from “Counter-Involution” Policies

In 2026, from central to local governments, policies are guiding traditional industries to “counter-involution” through capacity control, environmental constraints, and industry standards—creating unprecedented long-term benefits for cyclical sectors.

True company profile: Leaders in chemicals, non-ferrous metals, building materials, with high energy efficiency, strong technological strength, and compliance with environmental standards, benefiting from supply-side optimization and global order reconstruction. Early 2026, international copper prices hit record highs, gold surpassed $4,700/oz, macro logic for commodities remains strong, supporting these leaders’ performance.

We see that many domestic copper processing and high-end chemical giants achieved over 50% profit growth in Q4 2025, with industry concentration rising, and continuous accumulation by social security and insurance funds. For cyclical sector founders, the key in 2026 is to seize supply-side benefits, escape volatility, and become long-term pricing power leaders—truly the assets that capital is willing to hold long-term.

9. Pioneers in the “Low-Altitude Economy”

In 2026, the low-altitude economy enters an explosive phase driven by policy and capital, with commercial progress accelerating from manned aircraft to industrial drones, becoming one of the most watched emerging tracks.

True company profile: Companies with core independent intellectual property rights, able to obtain civil aviation certification, and with clear commercial deployment scenarios. For example, WoFei Chang Kong announced nearly 1 billion yuan in new funding early 2026, led by CITIC Capital, setting a record for early-stage eVTOL financing domestically. The government is also promoting drone insurance systems, removing final institutional barriers for industry scaling.

Many low-altitude economy companies we engaged with received numerous investment intentions, especially those with airworthiness certificates, confirmed orders, and clear commercialization timelines. For founders, airworthiness certification is the “passport” for financing; commercial deployment is the “ballast” for valuation.

10. “Value Stocks” with High Dividends and Governance Improvements

As insurance and social security funds become dominant long-term capital, their demand for certainty and stability has led to a comprehensive revaluation of high-dividend value stocks, making them the preferred core holdings for long-term funds.

True company profile: Valuations at historic lows, stable cash flows from main businesses, strong profitability sustainability, and willingness to increase dividends and buybacks. Especially state-owned enterprise leaders with ongoing governance improvements and rising dividend payout ratios are becoming key targets for insurance funds’ holdings.

Since Q4 2025, insurance funds have increased holdings in Shanghai Airport and conducted intensive research on listed banks like Jiangsu Bank and CITIC Bank, focusing on dividend policies and long-term profitability. Many state-owned giants with dividend payout ratios over 50% have seen stock price gains far exceeding the market since early 2026, with cumulative insurance holdings exceeding 10 billion yuan. For such companies, stable dividends are the core secret to attracting long-term capital.

Part Three

2026 Fundraising Pitfall Avoidance Guide—Embrace the “Patience Capital” with the Right Approach

If your enterprise fits the above 10 profiles of “true companies,” congratulations—you have entered the core hunting ground of 2026 capital. But to truly secure funding and attract suitable long-term capital, you must avoid pitfalls and master three correct approaches to embracing “patience capital.”

1. Open the Board, Welcome True “Strategic Partners”

In 2026, founders must abandon the old mindset of “treating investors as ATMs.” Under new CSRC regulations, strategic investors must hold more than 5%, and they seek not short-term equity appreciation but deep involvement in governance and long-term growth.

Many founders worry: opening the board might lead to losing control? Or being meddled with? But our experience shows that truly excellent strategic investors are not here to seize control but to empower. For example, a semiconductor company we served gave Taikang a board seat, which brought not only long-term funds but also access to a large insurance industry network, helping the company achieve 2.3x revenue growth in 2025.

In 2026, top founders must have the courage to open the board, accept strategic investors. They bring not just money but also supply chain resources, governance capabilities, and risk control systems—more valuable than capital itself.

2. Replace “Traffic” with “Profit,” Abandon the PPT Logic of VC

In 2026, valuation systems are being recalibrated. ReSheng Asset’s 2026 investment strategy states: “The market will fully recalibrate valuations based on real performance; valuation bubbles without performance support will be burst.”

In the past, many founders’ pitch decks started with “trillion-dollar tracks,” telling grand stories and drawing big pies, avoiding profitability. But in 2026, presenting such a PPT to investors will likely lead to rejection. We’ve seen many founders talk for half an hour about industry prospects, only to be asked about net profit—many are still in big losses, with negative cash flows, and investors cut off communication.

In 2026, when meeting investors, your first slide should directly show gross margin, profit growth, and free cash flow. Turning profitable and positive cash flow into a prerequisite for fundraising. Abandon the “PPT storytelling” of VC and speak with real performance—this is the highest skill in fundraising.

3. Understand the “Aesthetic” of Insurance Capital and Match Long-term Funds

In 2026, insurance funds have become the largest marginal price setters and the biggest source of incremental capital. Since the biggest funders have changed, founders must study their investment aesthetic, rather than using old VC logic to connect with long-term capital.

Insurance funds prioritize absolute returns, low volatility, and high certainty. They do not chase short-term valuation surges but seek long-term, stable, sustainable returns. When communicating, don’t talk about how many times your business can multiply in a year; instead, focus on whether your business model is stable, your growth sustainable, your dividend and buyback plans clear, and your risk control system robust.

To attract long-term capital in 2026, you must first understand the investor’s aesthetic and match your financing plan accordingly, rather than using a one-size-fits-all PPT.

Conclusion

In 2026, capital markets are never short of money; what’s lacking are “true companies” worth long-term investment.

What is a “true company”? It’s not a bubble built on stories or hype, but a business with genuine technology, real performance, sound governance, and positive cash flow. It doesn’t pursue short-term explosions but focuses on long-term value creation; it doesn’t indulge in capital games but deepens industry roots, creating real value for customers and society.

The era of flood-like capital infusion is over; the era of precise drip-feeding has begun. Founders who work diligently will usher in the best times.

When capital shifts from “quick-profit speculators” to “strategic partners who run long,” you will realize that only companies creating long-term value can survive cycles; only patient capital deserves long-term growth.

May every founder who stays true to their original intention and diligently creates value find capital that understands you in 2026, and together, venture toward greater horizons.