Future Capital raises $100m for China VC fund
Future Capital has closed its third US dollar-denominated fund at $100 million. The Chinese VC firm will continue its strategy of backing start-ups with technologies that drive industrial upgrades and improve consumer experience.
LP commitments came from foundations, family offices, fund-of-funds, and entrepreneurs. While some investors were re-upping from previous funds, Future Capital brought in financial institutions and European family offices as new backers. The firm noted in a statement that the fundraising environment in China began to deteriorate in the first half of 2018, but the new fund reached a final close within three months.
The firm now has RMB2.5 billion under management across three US dollar funds and one renminbi fund. There are plans to launch a second renminbi vehicle in the near future. Future Capital also sought $100 million for its second US dollar fund in 2015. The most recent filing for that vehicle, dated July of that year, indicates that $46.6 million had been raised.
"LPs value the driving forces behind the continued success of a GP – mature investment strategies, sound investment decisions and exit planning, and institutional team management capabilities. Since the first day of our establishment, we have focused on early-stage technology investments. The performance of previous funds has been strong, so changes in the fundraising market haven't had much impact on us," said Mingming Huang, the firm's founding partner.
Within the technology space, Future Capital focuses on artificial intelligence and big data, smart mobility, high-end manufacturing, the internet of things, new materials, aerospace, medical devices, and information technology. It has invested in more than 130 start-ups.
In recent months, the firm has seen companies like Pony.ai and Yihang.ai – both autonomous driving technology developers that it backed from an early stage – raise follow-on rounds. Another portfolio company, Niu Technologies, China's largest producer of lithium-ion electric scooters, is in the process of listing in the US.
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