Qiming Venture Partners raised $3.2 billion across two new funds, joining Sequoia China and IDG in securing fresh capital as investors grow more sanguine about the country’s startup arena.
Qiming, known for early bets on tech giants from Bilibili Inc. and ByteDance Ltd. to Meituan and Xiaomi Corp., becomes at least the third venture house in recent weeks to home in on significant new capital. The firm closed its oversubscribed USD Fund VIII at $2.5 billion and also raised roughly $700 million in the first closing of a yuan-denominated fund, both aimed at the technology, consumer and health-care sectors. Qiming now manages $9.4 billion across 18 funds, it said in a statement on Monday.
led by investment guru Neil Shen, has raised about $9 billion for investments in technology and healthcare, according to people familiar with the matter, overcoming the fundraising challenges that have beset the venture capital sector.
The firm, which operates largely separate from Silicon Valley-based Sequoia Capital, raised the money from pensions, endowment funds and family offices from the US, Europe, the Middle East and Southeast Asia, the people said, asking not to be named because the matter is private.
Qiming, known for early bets on tech giants from Bilibili Inc. and ByteDance Ltd. to Meituan and Xiaomi Corp., becomes at least the third venture house in recent weeks to home in on significant new capital. The firm closed its oversubscribed USD Fund VIII at $2.5 billion and also raised roughly $700 million in the first closing of a yuan-denominated fund, both aimed at the technology, consumer and health-care sectors. Qiming now manages $9.4 billion across 18 funds, it said in a statement on Monday.
Venture funding in China plummeted at the start of this year as the government’s far-reaching crackdown on consumer internet, gaming and fintech hit valuations across public and private markets. VC and private equity funds raised only $6.2 billion in the first five months of 2022, a 90% drop from the previous year, while startup investments slowed 40% to $34 billion, according to data from research firm Preqin.
Investors remain cautious about regulatory uncertainty but recent weeks have shown signs of improving sentiment, as Sequoia China secured about $9 billion for investments in tech and consumer firms. IDG Capital is poised to raise about $900 million for a new China-focused fund backed mostly by existing investors. Early-stage investor BlueRun Ventures China also reached the final close of a second dual-currency fund of more than 5.5 billion yuan ($817 million) in May, according to a company statement.
Founded in 2006, Qiming has backed over 480 companies. The company has made over 180 exits, it said in the statement. Managing Partners Duane Kuang, Nisa Leung, William Hu and Gary Rieschel will lead Fund VIII, the firm said.
enture firm IDG Capital is poised to raise about $900 million for a new fund focusing on investment in China, a rare feat amid skepticism about the political and market risks of Asia’s largest economy.
Most investors are existing backers of IDG, which has been putting money into Chinese technology firms for nearly three decades, according to people familiar with the matter, who asked not to be named because the matter is private. The new fund will focus on technology startups, the people added.
You must be logged in to post a comment.