China's H Capital targets $700m for fifth fund

The latest fund, H Capital V, is the GP's fourth vehicle since 2014, when it closed H Capital II at $300 million. H Capital III followed in August 2015, seeking $500 million, and the firm launched its fourth fund in 2017 with the same target, according to AVCJ Research.

Founded in 2002, H Capital focuses on internet-related businesses in China, targeting sectors such as financial services, e-commerce, and education. The latter sector has been of particular interest to the GP, which led a $100 million Series D round for teaching platform 17zuoye.com in 2015. In the same year, it led a $30 million investment in Lexue Education, and two years later it led a $150 million Series C round for Zuoyebang, a K-12 focused education mobile app that spun out from Chinese online search engine Baidu.

“I have been focusing on online education, and I believe that the combination of education and the internet will create great companies,” said Chen when announcing the investment in Zuoyebang.

Its other portfolio companies include Xiamen Meitu Technology, a developer of a mobile camera and photo-editing app. The firm invested $3 million and $5 million in the company in 2014 and 2016, respectively, according to AVCJ Research. The app developer listed in Hong Kong in 2016 in a $630 million IPO, but its shares have shed almost 50% since the debut. H Capital also invested in photo retouching app Nice in 2014.

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• Topics
• Greater China
• Venture
• Fundraising
• Technology
• China
• Education
• TMT
• H Capital