Shenzhen Capital, SOSV to launch angel, growth funds
Shenzhen Capital Group and SOSV Investments have agreed to establish a China-focused angel investment fund as well as a growth stage vehicle targeting European companies.
The two firms said in a statement that they will manage the two funds together, leveraging their extensive experience of the Chinese, European and US markets. They hope to take more Chinese companies overseas and help foreign businesses enter the China market. No details were given regarding the fundraising targets.
SOSV's incubation model is a good reference point for Shenzhen Capital in terms of enhancing services provided to portfolio companies, noted Zewang Ni, chairman of the Chinese group. Sean O'Sullivan, founder and managing general partner of SOSV, added that his firm was attracted by Shenzhen Capital's rapid development, strong track record, and high level of internationalization.
Shenzhen Capital was established by the Shenzhen government in 1999 and has more than RMB290 billion ($43 billion) in assets under management. It primarily invests in small and medium-sized enterprises (SMEs) in hi-tech and emerging industries. The firm manages a wide range of investment vehicles, including commercial funds, joint venture funds, mutual funds, and government guidance funds. It has established 103 government guidance funds alone, with total assets of RMB32.9 billion.
In January, Shenzhen Capital announced it had formed its first angel investment fund and raised half of the RMB500 million being targeted. The firm also reached a first close of RMB1.8 billion on its debut M&A fund, which has an overall target of RMB3.6 billion.
Founded in 1995 and previously known as SOS Ventures, SOSV is a US-based global VC firm. It runs accelerator programs and makes follow-on investments in select companies at the seed, venture and growth stages. The firm currently has $550 million in assets under management and has backed over 600 companies since inception. Its closed its third global VC fund in 2017 at $150 million.
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