Redpoint China raises $400m across two new funds
Redpoint China Ventures has closed a $300 million fund focusing on early-stage investments and a $100 million opportunity fund looking to invest in growth-stage companies.
Both US dollar funds will focus on the areas of consumer, enterprise and emerging frontier tech start-ups based in China, according to an announcement. LPs for the new vehicles include sovereign wealth funds, international pension funds, and university endowments, as well as existing LPs for Redpoint's previous US dollar fund.
“We are excited to continue helping some of China’s most compelling founders build successful companies with a global viewpoint and customer base,” said David Yuan, founder and managing partner at Redpoint China. “China has one of the most robust technology start-up ecosystems in the world, and we continue to see enormous investment opportunities here.”
Yuan launched Redpoint China in 2005, establishing offices in Beijing and Shanghai. The GP became independent from US-based Redpoint Ventures after raising $180 million for its first China-dedicated US dollar fund in October 2016. Last year, it raised RMB700 million ($110 million) for its first renminbi-denominated fund, which also has a focus on early-stage technology start-ups in China.
The GP’s China team has so far invested in more than 50 companies, including internet security company Qihoo 360 Technology, video-streaming app Yixia.com, second-hand car trading platform Renrenche, and news reading app Qutoutiao, which raised $84 million in its US IPO last year.
The new opportunity fund comes as China-focused VC funds have seen fundraising totals boom in recent years, prompting GPs to set up new sidecar vehicles in a bid to better tap the opportunities for Chinese companies at all stages. Lightspeed China, for instance, added a $200 million sidecar for its fourth US dollar fund which closed in December at $560 million, intending to invest solely in Series C rounds while the core fund focuses on Series A and B.
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