B Capital expands into China, raises follow-on fund

The China team will be led by incoming general partner Daisy Cai, previously a partner at SoftBank Vision Fund and Gaocheng Capital. She will be responsible for early and growth-stage investments in local companies. China operations will be based out of Hong Kong with a Beijing office in support.

B Capital was set up in 2015 by Facebook co-founder Eduardo Saverin and Raj Ganguly, previously of Velos Partners and Bain Capital. Asia was always part of its agenda, with a Singapore office having opened in tandem with bases in Silicon Valley and Los Angeles upon inception.

The launch of the China business coincided with a commitment to expand investment in India and Indonesia, which the firm has identified as two of the fastest-growing technology hubs in the region. Most of B Capital Asian activity to date has been in these jurisdictions.

Rapid adoption of digital technology since the onset of the COVID-19 pandemic was flagged as a key motivator of the China buildout. Categories of interest include financial services, transportation, manufacturing, trade, enterprise, and consumer enablement.

Ganguly said in a statement that following the rise of the consumer internet in China, the next two decades would involve more focus on digital enterprise transformation and B2B technology. He highlighted this opportunity in healthcare, banking, insurance, and industrials.

“Of the 10 largest companies in China, only Huawei truly provides enterprise-scale technology solutions,” Ganguly said. “We believe now is the right time to enter China because the next marquee name in enterprise technology is being developed right now. We are excited to find the next Salesforce or Oracle in China, and we already have a number of companies in our sights that have this type of potential.”

B Capital said it would leverage a strategic partnership with Boston Consulting Group (BCG) to enhance operational support for portfolio companies. BCG, which has operated in China for more than 30 years, has more than 400 professionals locally.

The new late-stage fund, known as Elevate, is part of an extension of B Capital’s multi-stage investment strategy globally. The firm described it as the next step in its mission to be able to support companies across their lifecycles from early stages to IPO. It brings total assets under management to $1.9 billion.

B Capital’s debut fund raised $360 million in 2018 with support from BCG and BCG Digital Ventures. It focused on Series B and C deals of up to $20 million. A second flagship fund closed at $820 million with a mandate to invest in a range of $10-60 million at the Series B to D stages. A seed-stage fund has raised at least $126.3 million as of this month, according to a filing.

Separately, B Capital has sought to raise $300 million for a special purpose acquisition company (SPAC). B Capital Technology Opportunities Corp will leverage the resources of B Capital, which is described as an affiliate of the sponsor. It will also pursue an investment thesis focused on digital transformation of traditional industries.

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• Topics
• Greater China
• GPs
• Fundraising
• Venture
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• Southeast Asia
• China
• Hong Kong (China)
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