China's Linear Venture closes third fund
China’s Linear Venture has closed its third fund with a renminbi-denominated vehicle of RMB500 million ($72 million) and a US dollar-denominated vehicle of $70 million.
LPs include Asian asset management firms, fund-of-funds based in China and the US, family offices, and founders or executives from a number of Chinese internet giants, including Alibaba Group, Tencent Holdings, Meituan Dianping, Qihoo 360, and Qunar. Executives from Facebook, Twitter, and Linkedin also participated.
Both of the new vehicles under the fund were “strongly” oversubscribed, according to Linear. It brings the VC's assets under management to more than RMB1.5 billion across three US dollar funds and two renminbi funds.
Linear closed its first fund in 2014 at $50 million. Its second, which also comprises renminbi and US dollar vehicles, closed at $70 million in 2016.
Founded by former Facebook employee Huai Wang and Chuan Zhang, who served as an executive at JD.com and Tmall, the three-year-old VC firm focuses on applied data intelligence. This refers to the use of big data-related technologies such as artificial intelligence (AI) in various industries.
Linear has invested in 30 companies in this domain, including Horizon Robotics, AI-powered robot producer Rokid and online micro-lending company Dianrong.com.
“We believe the next five to ten years will see the massive use of data intelligence technologies in industrial and commercial sectors, with the technologies being able to improve the efficiency in those traditional industries with less money. This is set to happen and become the norm,” said Wang.
The close extends a string of substantial fundraisings by Chinese VCs with a cross-border angle in the face of a range of uncertainty factors, including weakening public markets in China, underperforming IPOs, worsening renminbi fundraising conditions, and talk of a correction in start-up valuations.
In November, Shunwei Capital Partners, founded by Xiaomi founder Jun Lei, closed its fourth US dollar-denominated fund at $1.21 billion. In October, GGV Capital closed its latest fund at $1.88 billion. This followed Sequoia Capital raising $2.5 billion across three funds covering seed, venture and growth investments, and Morningside Venture Capital closing its fifth China vehicle at $1 billion.
Earlier in the year, Qiming Venture Partners raised $1.39 billion for its latest US dollar and renminbi vehicles, as well as for a US healthcare fund.
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