China's Baidu to establish internet, AI-focused fund

Baidu is to serve as the cornerstone investor in the fund, which will make investments of $20-30 million. Jennifer Li, who joined Baidu Capital as CEO last September after nearly a decade as CFO of Baidu, will relinquish her role to lead the new fund, local media reported. Meanwhile, Baidu Capital has hired Dong Jia from TPG Capital as a managing partner. He previously served as deputy CEO of China Life Investment.

Baidu already has two investment divisions, Baidu Ventures and Baidu Capital. The former was established in 2016 and claims to be the largest investment firm in China specializing in AI, participating in seed, Series A and selective Series B rounds in China and the US. In February, Baidu Ventures achieved a first close of more than RMB2 billion ($318 million) on its second renminbi-denominated AI fund.

Baidu Capital targets mid- to late-stage deals, typically starting with Series B rounds. A RMB20 billion fund was established in 2016 and most of the capital comes from third-party investors. The division also has a strong AI focus. It is divided into two teams: one concentrates on underlying AI technology from basic structures to applications; and the other backs platform companies with large user bases – in areas such as transportation, education, and healthcare – where AI can be implemented efficiently.

There are also a few bilateral funds that fall under the Baidu umbrella. For example, last year the company teamed up with China Life to form a RMB7 billion private equity firm that will target technology companies. In January, Baidu launched a $200 million fund with Singapore technology conglomerate Asia Mobility Industries (AMI) that will focus on autonomous driving and intelligent transportation.

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• Topics
• Greater China
• Technology
• Fundraising
• China
• Baidu
• Appointments
• artificial intelligence