Lightspeed China’s co-founder Ron Cao to start own firm
Ron Cao, co-founder and managing director of Lightspeed China Partners, is preparing to set up his own venture capital firm called Yunjiu Capital.
Wei Hao and Jinn Wang, formerly vice presidents in Lightspeed China, and Zhun Qiu, ex-managing director at Decent Capital Partners, have joined Yunjiu Capital, Cao wrote in a public letter to Chinese media. Cao will continue to manage Lightspeed China's two existing US dollar funds. However, he will not be involved in the firm's future business.
Yunjiu Capital will focus on early-stage tech, media and telecom (TMT) investments in China, in particular in the areas of internet consumer and social enterprise services.
Cao and James Mi, formerly managing directors at US-based Lightspeed Venture Partners, started the firm's China operation in 2006. Lightspeed China raised its first vehicle at $168 million in 2012, and closed its second China fund at $260 million in June 2014.
"Sometimes I was confused. I believed Lightspeed was my own brand - but although its operation is in China it's actually an US brand and it doesn't belong to me," Cao said in the letter. "Whether to a person, or a company, what they work will ultimately reflect on a brand. If the brand isn't yourself, you won't be able to achieve your mission."
This comes after Lightspeed China announced the establishment of its debut renminbi-denominated fund in order to create more flexibility in backing early-stage Chinese start-ups. The local vehicle and the future Lightspeed China funds will be led by Mi and the firm's partner Herry Han. The total renminbi fund size was not disclosed but the vehicle is about to close.
"As the domestic IPO market is becoming more meaningful, it makes sense to raise a relatively small renminbi vehicle. It allows us to make early investments in tech companies, such as cybersecurity and online media firms, which are restricted from foreign investors," Mi told AVCJ.
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