Linear raises $200m for China VC fund
Chinese venture capital firm Linear Capital has closed its fourth US dollar-denominated fund at nearly $200 million, taking its overall assets under management to $400 million.
LPs include Asia-based asset management companies and fund-of-funds, sovereign wealth funds, three university endowments, corporates, and technology start-up founders. The vehicle was 20% oversubscribed, the firm claims.
Linear now has four US dollar funds and two renminbi vehicles. The third US dollar fund closed at $70 million in 2018, with a second renminbi vehicle closing at RMB500 million ($74 million) in the same year. The firm raised $70 million for Fund II - described as a dual-currency vehicle - in 2016 and $50 million for its debut US dollar fund in 2014.
Linear has announced plans to raise RMB600-700 million for its latest renminbi fund. It is also looking to build out its team.
The firm was founded in 2014 by Huai Wang, previously an R&D manager at Facebook. Wang started out making angel investments after selling his Facebook stock. He then established Linear with Chuan Zhang, formerly an executive at JD.com and Alibaba Group's Tmall. Zhang departed last year to launch Qiaozao Technology, an e-commerce start-up.
Linear focuses on early-stage investments in data application, data infrastructure, and frontier technology. It has backed more than 80 start-ups, including edge artificial intelligence (AI) developer Horizon Robotics, internet security specialist FraudMetrix, online interior design player Kujiale, big data player Sensors Data, smart household device start-up Rokid, and electric vehicle manufacturer WM Motor.
Speaking in May, Wang identified four areas he is prioritizing for 2020: data-as-a-service (DaaS), AI in industrial applications, AI in offline retail, and AI in construction technology.
He also highlighted three criteria for choosing portfolios. First, start-ups must have data-based business models. Second, these data can be processed using AI technology and deliver actionable insights. Third, there must be real commercial applications that can solve challenges around production and transportation.
The pace of China venture capital fundraising has risen in recent weeks, with the likes of Qiming Venture Partners spin-out Inspiration Capital, consumer-focused BA Capital, and technology specialist M31 Capital announcing final closes.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.