China's Meridian raises $330m for renminbi fund
Chinese VC firm Meridian Capital has closed its sixth renminbi-denominated fund at RMB2.12 billion ($330 million) after four months in the market.
LPs include national development funds, local government guidance funds, market-oriented fund-of-funds, insurance companies, and large corporates. The re-up rate was 45.7%.
Meridian is looking to raise RMB3.3 billion this year, across three funds encompassing venture, angel, and industrials strategies. The angel and industrials funds also launched earlier this year and are still being raised, according to a statement.
The remit for the new flagship VC fund is unchanged. Meridian will focus on the consumer, corporate services, and technology sectors, primarily participating in Series A and Series B rounds. The fund has backed 11 companies, among them semiconductor start-up Biren Technology and noodle shop chain Hefu. Seven of the 11 have completed or are in the process of raising follow-on rounds.
Meridian was founded in 2008 by David Shong, formerly of IDG Capital Partners, and ex-J.P. Morgan banker Tracy Ji. It has raised two Singapore dollar funds and five renminbi funds and currently has RMB8.5 billion in assets under management. The firm has invested in over 190 companies and claims to have been the lead investor in 91% of its projects.
Portfolio companies that have gone public include live-streaming platform Tian Ge Interactive, property developer Golden Union, and e-commerce service provider Weimob. A further 17 companies have started the IPO process.
Meridian has accelerated its investment against the backdrop of COVID-19. Capital committed in 2020 was up 186% year-on-year, while follow-on funding raised by portfolio companies increased by 453%. There were more than 17 exits with the proceeds rising 336% year-on-year.
"When the uncertainty is greatest, attack is the only answer. To attack is to move firmly towards a wider world. In a cultural and digital content, in SaaS [software-as-a-service] and general-purpose enterprise services, as well as in new consumer areas, we are ahead of the market and keenly capturing industry changes," said Ji.
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