China's Baidu Ventures closes $400m fund
Baidu Ventures (BV), a venture capital firm established by Chinese internet giant Baidu, has raised $400 million for its third US dollar-denominated fund.
The GP, which was established by Baidu in 2016, now has $700 million under management across five funds. While Baidu serves as an LP in its funds and Robin Li (pictured) - Baidu's co-founder and CEO - is chairman of its investment committee, BV claims to be operationally independent of its parent. Other LPs include financial institutions and corporates.
BV positions itself as the largest investment firm in China specializing in artificial intelligence (AI). It backs start-ups developing deep technology related to algorithms, sensors, and data storage systems, as well as businesses operating in different industries – from precision medicine to driverless cars – empowered by AI.
The firm raised two generalist funds - one US dollar and the other renminbi - before specializing in AI for its second local currency vehicle. AVCJ Research's most recent entry for the fund is a first close of more than RMB2 billion ($318 million) in 2018.
BV participates in seed, Series A, and Series B rounds, primarily for companies based in China and the US. Focus areas include new energy vehicles, life sciences, corporate services, smart cities, semiconductors, smart manufacturing, and the internet of things (IoT).
The new fund has already made numerous investments. Geometrical-Pal, which develops a 4D millimeter-wave imaging radar to replace the traditional millimeter-wave radar used in spatial perception, Geneplus, a DNA sequencing start-up, and Global AI & Display, a smart home appliances specialist, feature in the portfolio.
BV plans to expand its domain expertise by hiring AI scientists to serve as advisors and participate in investment decision-making and post-investment support.
Baidu also launched Baidu Capital to target mid to late-stage deals, typically Series B onwards. In addition, several bilateral funds exist under the Baidu umbrella. The internet company has previously teamed up with China Life on a technology fund and established an autonomous driving and intelligent transportation-focused vehicle with Singapore-based Asia Mobility Industries (AMI).
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