China’s Baidu launches $3b technology fund
Chinese search giant Baidu has established a RMB20 billion ($3 billion) investment fund, called Baidu Capital, to target mid- and late-stage deals in the internet industry.
Investments will be made in renminbi, US dollars or other currencies, with individual amounts ranging from $50 million to $100 million, Baidu said via its official WeChat account. It will increase check sizes for important projects.
The commitments in the fund will come from several large insurance companies, securities companies, fund-of-funds, and other investment institutions including state-backed firms that have expressed interest in participating.
Baidu Capital, which will adopt a market-driven mechanism to run the fund, will pull in two or three managing partners from the internet and PE investment industry, according to the company.
Baidu's revenue decreased to RMB14 billion in 2015 from RMB22 billion in 2014, while its net profit dropped 37% to RMB6 billion. This weak performance was attributed to a slowdown in the search and online advertising businesses as a result of stricter rules on online advertisers.
The company has responded by expanding into new areas in search of growth. Last month, it announced a $200 million fund to invest in next-generation technologies, such as augmented reality and virtual reality. The fund is managed by Baidu Ventures, an independent entity. Prior to that, it set up a $303 million media fund that will support the production of at least 30 movies over the next two years.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.