Summary of Key Points
Wang Huiwen, co-founder of Meituan, reflected on his investment portfolio and noticed that the performance of companies located within a 2.5-square-kilometer area surrounded by institutions such as Tsinghua University and Peking University far exceeded those outside this zone. Leading companies from both the mobile internet era ( ByteDance, Xiaomi, Meituan, etc.) and the AI era ( Deepseek, Zhipu, etc.) were initially concentrated here. Of the 23 projects he invested in, only 6 were within this area, but among these six, Manus (with a 23.5-fold return on investment) and Yuezhiànmiàn (which quadrupled in value within half a year) were the most profitable. This area is not a planned technology park; rather, it represents a naturally developed innovation ecosystem that has gathered all the necessary elements—talents, technology, and capital—making it the “center of the universe” for tech entrepreneurship in China.
I. Wang Huiwen’s “Golden Circle”: A 2.5-Square-Kilometer Entrepreneurial Haven
The specific boundaries of this area are as follows: it extends from Tsinghua University to the north, Peking University to the west, along Xueyuan Road to the east, and to the north of Dazhongsi Temple to the south, covering an area of just 2.5 square kilometers (less than one-thousandth of Haidian District). Wang Huiwen observed that the performance of companies within this area was significantly better than those outside it. The top AI companies he invested in (such as Deepseek and Zhipu) were also located here. During the mobile internet era, the only profitable companies outside this area were Pinduoduo and REDnote.
Why is it called the “center of the universe”? Because this region encompasses more than a dozen universities (including Tsinghua, Peking, and Beihang University), several core research institutes of the Chinese Academy of Sciences (such as the Institute of Computing Technology and the Institute of Automation), numerous VCs, Class-A office buildings, and dozens of technology companies, making it the most densely populated hub for tech innovation in China.
II. Which Projects Within the Golden Circle Made Wang Huiwen a Fortune?
Of his 23 projects, 6 were within the designated area, and 3 of them were particularly profitable:
1. Manus: The return on investment was 23.5 times after one year. He invested in Manus during its second round of financing in November 2024, with a post-investment valuation of $85 million; one year later, Manus was acquired for $2 billion, resulting in a 23.5-fold return on investment (although the transaction was later aborted).
2. Yuezhiànmiàn: He invested $70 million in its third round of financing in 2025, with a post-investment valuation of $4.3 billion; the company’s value had doubled to over $2 billion within half a year. Yuezhiànmiàn also raised over $390 million in funding and is preparing for an IPO on the Hong Kong stock market.
3. Silicon-based Flow & Sand AI: These two companies were spun off from Wang Huiwen’s previous venture, Guangnian Zhiwai. Yuan Jinhui founded Silicon-based Flow (focusing on AI infrastructure), while Cao Yue founded Sand.ai (a large-scale video model platform); both have become leaders in their respective fields.
III. Why Is This Area So Powerful?
The key lies in the naturally developed innovation ecosystem:
- Stable foundation of talent and technology: Universities like Tsinghua, Peking, and Beihang University, along with core research institutes such as the Institute of Computing Technology and the Institute of Automation, continuously provide professors, PhDs, and technological advancements.
- Capital and companies flock here: VCs and tech companies gather in this area to be close to top talents, enabling easy collaboration, financing, and team formation. Examples include Huading Jiayuan (home to entrepreneurs like Wang Xing and Zhang Yiming), Dongsheng Building (hosting companies like Momenta and Zhipu), and Rongke Information Center (where Deepseek is located).
- Self-sustaining innovation cycle: The process from research papers to patents, financing, team formation, to product development all takes place within a 1-kilometer radius without external intervention. It’s like a fuel that ignites when it reaches a certain density; the innovation here can sustain itself continuously.
IV. How Does This Area Outperform Other Tech Parks?
Compared to other tech clusters in China:
- Yizhuang: While it has a manufacturing base, it is far from universities and thus struggles to attract young talent.
- Shanghai Zhangjiang: It benefits from policy support, but the density of research institutions is lower than here.
- Shenzhen Nanshan: It has strong industrial vitality but lacks top-tier universities like Tsinghua and Peking.
The core of this area’s success is its naturally formed ecosystem. Universities and research institutes provide a stable foundation, while capital and companies flow in, creating an unparalleled density of innovation.
V. Lessons for Entrepreneurs and Investors:
- Location is important, but luck plays a role too: Entrepreneurs should try to locate their businesses near this area to access talent, technology, and capital more easily.
- **Investors should focus on projects within the Golden Circle, but realize that hitting a big hit is still a matter of chance (only three or five out of Wang Huiwen’s 23 projects were highly profitable).
- The power of the ecosystem: The success of this area stems from a 70-year accumulation of talent, technology, and cultural heritage—these are the truly valuable assets.
In simple terms, Wang Huiwen’s discovery supports the concept of “geographical determinism” in entrepreneurship: a good location (close to talent and technology) increases the chances of success, but ultimately, success depends on the project itself and luck.
This analysis explains the logic behind Wang Huiwen’s “Golden Circle” in plain language, from the observed phenomena to the underlying principles and practical implications, making it accessible to non-financial professionals. The core message is clear: innovation doesn’t happen out of thin air; it requires a dense ecosystem, and this 2.5-square-kilometer area represents China’s most fertile ground for innovation.