Ron Cao's Sky9 raises $200m for China VC fund

There have already been several investments, including: Zhaoyouwang, a B2B e-commerce platform for the petroleum industry; eBroker, a wealth management online marketplace; Home, a social e-commerce platform for home furnishing; and Energy Monster, a power bank sharing business.

The vehicle is likely designated Sky9 Capital Fund III to reflect the two funds Cao co-led at Lightspeed. Sky9 – Yunjiu in Chinese – claims to have received support from institutional investors, family foundations, and entrepreneurs. It is particularly interested in early-stage opportunities in the areas of internet services, enterprise services, and deep technology.

The firm has offices in Beijing, Shanghai, Shenzhen, and Silicon Valley. It typically targets seed and Series A rounds, committing $1-10 million per deployment, with the option of writing checks of $10 million plus for expansion-stage rounds.

“Sky9 has an exceptional team, and we have the experience and the commitment to continue to explore and invest in the biggest technology opportunities in China today,” Cao said in a statement. “The size and scale of the China internet and technology space continue to be unprecedented.”

Cao, formerly a managing director at US-based Lightspeed Venture Partners, started the firm's China operation in 2006. James Mi joined two years later and he and Cao launched the first Lightspeed China vehicle, which closed on $168 million in 2012. They then raised $260 million for a second fund in 2014.

Cao departed in June 2016, a few weeks before the firm announced it had raised $260 million for Fund III, beating the $240 million target. Last year, Lightspeed China closed its first renminbi fund at RMB600 million ($87 million).

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• Topics
• Greater China
• Fundraising
• Venture
• Technology
• China
• Venture
• TMT
• Sky9 Capital
• Lightspeed Venture Partners