By 36kr

Capital, once disconnected from industry, is like a ship without an anchor. As economist Joseph Schumpeter once said, capital is not an end in itself but a tool to foster creative change in the real economy. This principle has become deeply ingrained in the ethos of Harvest Capital, led by Alan Song.

Since its inception, Harvest Capital, under Alan Song’s leadership, has supported the growth of well-known national brands on the path of steady and substantial consumption: Jinmailang, Eastroc Beverage, Qiaqia Food, Jiajia Food, Laiyifen, Babi Food, Laoxiangji, Aimer, Taikang, Meitu, Meituan, and Didi.

For Song, capital should not be seen as a magic formula to turn stone into gold. Arbitrage and short-term financial games are superficial; the true purpose of capital is to generate real output, provide stable jobs, and create lasting value for society.

In the current fast-paced market environment, many remain fixated on chasing fleeting trends or indulging in speculative digital games. Even more so, the speed of capital turnover is often viewed as the measure of success. Yet, Alan Song has consistently maintained a rare clarity and conviction in his approach.

Driven by this conviction, his decisions often reveal a calm strength, even through market cycles.

01. The Return of Finance: From "Arbitrage Illusion" to "Industrial Faith"

"Once the financial industry becomes the most profitable sector, it strays from its core mission of serving the real economy." Alan Song has never hesitated to voice his true thoughts. With more than 30 years of experience in the capital market, he has witnessed the expansion and eventual distortion of China’s financial industry.

In his view, the financial boom not only fueled economic growth but also led to two types of industry chaos that gradually separated capital from the real sources of value creation.

For a long time, many investors became addicted to the arbitrage game of “making money from money.” Back then, restructuring or leveraged buyouts could quickly generate substantial returns. In contrast, industrial investments seemed slow and arduous. Yet, behind this financial prosperity, Song saw a looming crisis: neglecting industrial cultivation and the core mission of creating long-term value. This detachment of capital from industry not only exacerbates market volatility but also erodes the foundation of the real economy.

As a result, the financial industry became like a castle built on sand—where the true risk is exposed when the tide goes out.

What concerns Song even more is the rise of “light industry.” While funds and top talent have flooded into finance and the internet sectors, traditional industries like manufacturing and consumer goods face shortages of capital and brain drain. This imbalance in resource allocation diminishes innovation in the real economy while leaving the financial industry without the industrial foundation it needs, creating a vicious cycle: "The more prosperous the virtual economy becomes, the weaker the real economy grows."

In such a cycle, Alan Song identifies three key issues in the financial system’s failure to serve the real economy: 1) Capital idling in the financial system instead of being effectively deployed in industries; 2) A failure in risk pricing, making it difficult for private enterprises and SMEs to secure financing; 3) Financial innovation straying from its service-oriented nature, with excessive focus on derivatives and increasing systemic risks.

“Finance must regain its human purpose,” Alan Song has emphasized multiple times. This isn’t just a slogan but a call for deep institutional change. The practice of this philosophy is what Harvest Capital calls the "Reconstruction of Faith." In their unique investment evaluation system, investments that can generate real GDP, provide stable employment, and address people’s livelihood needs are prioritized over short-term financial returns.

“We’re not in a rush to pursue short-term exit returns or rely on the fluctuations of valuations. Instead, we take a long-term approach, accompanying companies through the entire cycle and growing alongside them with our professional capabilities,” Song explained.

This philosophy is particularly valuable in capital markets where success is often defined by speed and leverage. Song’s redefinition of capital’s value coordinates is simple yet profound: "The true meaning of investment is not about short-term returns, but the value created for society."

02. The Investment Philosophy: Anchored in the Right Track, Focused on "The Brand Behind the Brand"

Harvest Capital’s investment portfolio reads like a map of China's consumer landscape: from Eastroc Beverage in Guangdong, to Laoxiangji and Xiaocaiyuan in Anhui, from Babi Food and CHANDO in Shanghai to familiar brands like Qiaqia Food, Aimer, and Meituan across the country.

“Consumption is the ballast of China’s economy, a stabilizing force that resists cyclical fluctuations. Essential consumer goods, closely tied to people’s livelihoods, are the most certain, warm, and vital sector for investment,” Alan Song often says. This mindset serves as a compass guiding Harvest Capital through market cycles.

Song’s investment philosophy can be summed up in six words: “Essential needs, high frequency, people’s livelihoods.” While venture capitalists chase after new concepts, the Harvest team has focused on upgrading essential items such as oil, salt, and vinegar, as well as improving the efficiency of foodservice and retail. Their goal is simple: to make everyday items—like a bottle of water, a bowl of noodles, or a breakfast—healthier, more convenient, and of better quality. "This investment logic, combined with China’s current market situation, can support long-term market change."

This confidence is rooted in years of deep insight into the Chinese consumer market.

Looking globally, China has the largest consumer group and the most mature industrial chain. The country’s consumer market holds tremendous potential. Rigid demand consumption not only resists economic volatility but also presents significant opportunities for innovation. "From basic food to better food, from warm clothing to fashionable clothing, from meeting basic needs to pursuing a quality life, the upgrading of Chinese consumer demand is relentless, providing a steady stream of growth for companies in essential sectors."

Unlike many traditional VC/PEs that follow a broad investment strategy, Harvest Capital adheres to the principle of “less but better.” "In today’s capital market, money is abundant, but the real rarity is the professional expertise to understand industries deeply, empower companies, and commit to their long-term growth," Song stated.

This philosophy is encapsulated in what Harvest Capital calls its "Five Truths" methodology. For instance, when investing in Eastroc Beverage, the team spent extensive time studying the competition and consumption pain points in China’s functional beverage market before committing. Afterward, they didn’t just sit on the board but were involved in operational details such as channel reform, product R&D, and brand upgrades.

Similarly, with Laoxiangji, Harvest Capital’s deep involvement is evident at every key milestone, from initial contact to the company's IPO. Harvest believes that the true value of capital lies in its ability to use expertise to help companies optimize strategies and integrate resources—unlocking compound growth more efficiently.

This model of deeply supporting businesses has been consistent across the companies in its portfolio. Take Nature Hall, a newly invested national beauty brand. From the first contact in 2021, Harvest Capital worked with Huawei to provide strategic planning, budgeting, and organizational development, joining the company’s business analysis meetings to improve quality and efficiency, and helping the company enhance its digital decision-making.

Currently, many of the companies in Harvest Capital's portfolio have become industry leaders, delivering over 20x returns on investment. This success proves Song’s belief: deep industry cultivation and a long-term investment strategy can generate excellent financial returns.

03. The Answer for the New Era: Let Capital Serve Society

“We are entering an era of business for good,” Alan Song remarked, a statement that resonates deeply in today’s context.

As China’s economy enters a phase of high-quality development, the market is redefining the value of enterprises. "In the past, business success was measured by scale and growth. Now, it is increasingly driven by employment, technological innovation, and social responsibility." This shift represents a fundamental change in the value coordinate system.

In Song’s view, the "Chinese-style rational capitalism" should have three core dimensions: capital rationalization with a clear understanding of financial services, long-term investment focused on the compounding power of time, and a commitment to businesses that align profit with social good.

“Making money isn’t hard, but making it in a way that brings peace of mind is,” Song emphasized. In an environment of oversaturated marketing and subpar products, he advocates for businesses that operate with integrity and diligence.

This philosophy is evident in Harvest Capital’s investment criteria, where they prioritize entrepreneurs with "industrial belief" and a "long-term mindset." The firm is looking for partners like Eastroc Beverage, Laoxiangji, Xiaocaiyuan, and Babi Food—companies committed to the long-term journey.

Moreover, consumer investment is entering deeper waters. The traditional models relying on traffic and quick capital gains are failing. Going forward, success will depend on fine operations, product innovation, and supply chain efficiency. The companies that truly focus on their industry and products will stand out.

Time is a measure of an enterprise’s value, and money is the by-product of doing things right. Over the past two decades, Harvest Capital has also experienced its own growth and transformation.

By 2025, Harvest Capital’s assets under management have exceeded 30 billion yuan. With its deep understanding of the consumer industry and its value-creating approach, the firm has become a leading player in China’s consumer investment sector. Alan Song, with his outstanding achievements in consumer investment, ranks 3206 on the 2025 Hurun Global Rich List, entering the ranks of "new wealth" recognized by the capital market