China's Bright Capital raises $137m
China-based venture capital firm Bright Capital has raised CNY 1bn (USD 137m) across two funds - its third renminbi-denominated vehicle and its first US dollar fund.
A statement issued by the firm didn't specify how much had been raised under each currency. LPs include onshore and offshore fund-of-funds, government guidance funds, industry-linked funds, and entrepreneurs.
The final closes come nine months after Bright Capital completed a USD 82m cross-currency restructuring, which saw three assets transferred from earlier renminbi funds to the US dollar vehicle. Foundation Private Equity led the deal, supported by half a dozen other investors, including three fund-of-funds that also vetted Bright Capital as a prospective primary commitment.
The firm was founded in 2016 by Xiaofeng Wu and Alice Luo, through a spinout by younger members of the NewMargin Ventures team. Wu has previously managed government guidance funds, while Luo used to work for Tencent Holdings.
The first two renminbi funds closed on CNY 500m and CNY 1bn, respectively, according to Bright Capital's website. The strategy is early and growth-stage investments at the nexus of consumer and technology, rooted in an appreciation of the nuances of generation Z. Earlier this year, the firm pledged to increase its investment in this area despite slowing consumption and valuation corrections.
"We focus on new consumption, but it’s wider than retail – it’s the new lifestyle of the younger generations in mainstream society,” Wu told AVCJ in a previous interview.
Bright Capital reaffirmed its confidence in China's consumer sector on closing the funds, noting that great companies often emerge during times of economic hardship. The firm said in a statement that it would "accompany entrepreneurs through the low times and embrace spring.”
Bright Venture Capital has made more than 50 investments since its inception. Standouts include KK Group, an online-to-offline retail chain, and Ximalaya, China’s biggest podcasting platform.
It has also backed cross-border e-commerce player Youkeshu Technology, self-service equipment payment platform Leyaoyao, flower delivery business Flower Plus, cake brand Happy Cakes, software-as-a-service provider Zhimadi, and game developers Dream of Dragon and Langrensha.
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