China's Sinovation reaches $250m mark on fifth VC fund
China-focused Sinovation Ventures reached a USD 200m first close on its fifth flagship US dollar-denominated fund in April and is currently around the USD 250m mark against a target of USD 500m.
AVCJ learned of the development from a source close to the situation.
The source added that Sinovation achieved a final close of around USD 600m on its debut growth-stage PE fund - which focuses on introducing artificial intelligence technologies (AI) to traditional industries - in February. The target was USD 1bn.
Launched in 2009 by a team led by Kai-Fu Lee, formerly China president at Google, Sinovation remains focused on domestic technology deals. Other VC managers with US dollar funds have moved to a "China-plus" model whereby they pursue China-related investments overseas amid rising geopolitical pressures at home.
Approximately USD 13.5bn has been committed to US dollar VC funds so far this year, up from USD 9.1bn in 2020. However, the number of closes is down by one-quarter and three-quarters of the capital raised has been shared by two managers - Sequoia Capital China and Qiming Venture Partners.
Sinovation closed its fourth fund on USD 500m in 2018, having spent only one month in the market. The firm raised USD 180m for its debut fund in 2011, USD 275m for Fund II in 2012, and USD 300m for Fund III in 2016.
There have also been three renminbi funds. The second and third vintages closed in 2016 and 2019, respectively, each on CNY 2.5bn (USD 349m). Sinovation's website says the firm manages more than USD 3bn across 10 US dollar and renminbi funds.
The growth-stage fund, known as Sinovation Disrupt Fund, is a continuation of the AI Institute, which was established in 2016 to conduct research into the practical application of AI and to serve as a base for AI talent development.
Sinovation established another unit, AInnovation or Chuangxin Qizhi, in 2018 to deliver AI-related products and customized business solutions that improve efficiency for corporate customers. AInnovation, which received several rounds of VC funding, completed an HKD 1.18bn (USD 151m) Hong Kong IPO in January.
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