Vertex China closes first renminbi fund at $438m

This marks Vertex China’s formal establishment of a dual currency fund system, according to a statement. The firm, which closed its fourth US dollar fund in October last year at $275 million, now manages more than RMB10 billion in total. The new fund will focus on deep tech, digital economy and biomedicine.

“In 2020, the global economy has been hit by COVID-19, but China has taken the lead in achieving epidemic control and economic recovery. We continue to be optimistic about the huge potential of China’s venture capital market," said Juncong Zheng, a managing partner at Vertex China.

Vetex’s China team has been together since 2009, with its parent company being the sole LP for the first six years. Vertex China received $80 million between 2009 and 2013, and then $150 million between 2013 and 2015. Its first vehicle with capital from outside investors raised $225 million in 2015.

The switch to relying on third-party capital was accompanied by structural reforms. For example, the team started to accrue all the carried interest and make investment decisions with no outside input. Vertex’s funds in Israel and the US – which also raised money from external LPs – underwent similar changes. The India and Southeast Asia operation followed suit in 2017.

Standout investments include Mobike, a bike-sharing start-up that was acquired by Meituan-Dianping in 2018 at an equity valuation of about $2.7 billion. Another liquidity event came with the RMB1 billion Star Market IPO of drug developer Chipscreen Biosciences.

The current portfolio features Horizon Robotics, a developer of microprocessors for artificial intelligence technologies that raised a $600 million Series B at a valuation of $3 billion. Meanwhile, Chinese lingerie brand Neiwai has achieved a valuation of more than RMB1 billion following a RMB150 million Series C round led by Qiming Venture Partners.

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• Topics
• Greater China
• Fundraising
• Technology
• Venture
• Vertex Holdings
• China