Zebra Capital closes second China fund
Zebra Global Capital, a Chinese GP established by Qunar co-founder Chenchao Zhuang (pictured), has reached a final close on its second fund. The firm said its total assets under management are now around $2 billion, without disclosing the size of the new vehicle. It closed Fund I at $800 million last year.
The LP base for the second fund comprises of top-tier US university endowments, the Hillhouse Foundation and Tencent Holdings, among others.
Zhao set up Qunar in 2005 alongside Yiliu Zhao and David Wu, both of whom now work with him at Zebra. The company became the second-largest travel booking site in China after Ctrip, sold a majority stake to Baidu in 2011, and then listed in the US two years later. Ctrip now holds a 45% stake in Qunar following a privatization led by travel-focused GP Ocean Link last year.
Zhao was an active angel investor before establishing Qunar, backing companies such as Chinese fashion e-commerce platform Meilishuo. He went on to support a few early-stage VC-funds, including Crystal Stream Capital.
Speaking to AVCJ in 2016, Zhuang advocated taking a hands-on approach to portfolio management. He noted that some entrepreneurs have good ideas as a result of their talent and some by accident, but success is primarily dependent on being able to put these ideas into practice through strategic discipline, strong execution, and effective team-building capabilities.
“Venture capital is a different business. As a minority investor, you need to understand the market opportunity, pick the right people and then make a decision on deploying capital. VCs cannot afford to make too many mistakes when picking the right people. At Zebra, we plan on being more involved in our portfolio companies, and have greater influence over operations,” he added.
As a result, Zebra appears to have constructed a relatively concentrated portfolio. Zhuang subsequently told Chinese media that the firm’s investment philosophy is to acquire controlling stakes in companies with a view to exerting more influence over business decisions.
Major investments include convenience store chain Bianlifeng. The company's stores have few - and sometimes zero - cashiers, with users able to order and pay for items via app. It also operates smart vending machines. Earlier this year, Bianlifeng acquired a controlling stake in rival players Lingwa.
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