Long Hill raises $300m for third China VC fund
Long Hill Capital closed its third US dollar-denominated fund at $300 million with a remit to pursue healthcare and longevity-related opportunities, which includes start-ups focused on wellness and services aimed at aging consumers.
Founded in 2016, Long Hill Capital now has RMB6 billion ($917 million) in assets under management, having raised $265 million for Fund II in 2018 and $125 million for its debut vehicle in 2016.
Fund III spent six months in the market and is said to have been oversubscribed. LPs include pension funds, endowments, financial institutions, family offices, and fund-of-funds.
The strategy is the same as in previous funds. Most of the capital will be deployed in early-stage investments with growth-stage opportunities considered on a select basis.
"We are thematic-driven and industry-focused investors. By focusing on vertical segments, we can seize exciting investment opportunities earlier and become the best partners for entrepreneurs," said Xiaodong Jiang, founding managing partner of Long Hill in a statement.
As to the healthcare and aging-related investment thesis, he noted that by 2050, nearly half China's population will be over the age of 50, yet the "infrastructure for both healthcare and longevity costs too much and delivers too little." Long Hill's goal is to help build a new generation of platform-level companies to provide services for China's soon-to-be 400 million seniors.
The firm has deployed $150 million in the past 18 months, backing 34 companies. During this period, existing portfolio companies have raised more than $750 million in follow-on funding led by the likes of Hillhouse Capital, Alibaba Group, and Bytedance.
In June 2020, Hygeia Healthcare became the first Long Hill portfolio company to go public. The VC firm was Hygeia's first investor and re-upped several times over the course of 10 years, according to Yiwen Zhu, founder of Hygeia. Other investee companies include LinkDoc, an oncology big data specialist, Gushengtang, an online platform for traditional Chinese medicine, and inCarey, a digital pharmacy chain.
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