Lightspeed China hits first close on renminbi fund
Lightspeed China Partners has returned to the renminbi funds space for the first time in seven years, reaching a first close of CNY 800m (USD 116m) on its latest local currency vehicle.
The fund launched in the third quarter of 2022 and has received LP commitments from state-backed fund-of-funds and innovation funds in the Yangtze River Delta region, endowments, listed companies, market-oriented fund-of-funds and asset managers, family offices, and entrepreneurs in the Lightspeed ecosystem.
James Mi, founder of Lightspeed China, confirmed this is the firm's second renminbi-denominated fund. The first closed on CNY 600m in 2016.
Investments will focus on green energy and hard technology. In 2021, Lightspeed changed its Chinese name to Lightspeed Photosynthesis, reflecting a renewed emphasis on green-tech investment. The firm has since backed companies in areas such as electric vehicles, synthetic biology, and hydrogen fuels.
The name change coincided with Lightspeed closing its fifth US dollar-denominated fund on USD 920m. There are two vehicles of equal size focused on early-stage and growth-stage deals, respectively. The firm raised USD 560m in the previous vintage and USD 260m in the one before that.
The firm started its independent operation in 2011 and raised its debut US-dollar fund at USD 168 million in the same year. The following two US dollar funds each raised $260 million in 2014 and 2016, respectively.
Mi joined US-based Lightspeed Venture Partners in 2008 and helped establish its China presence in 2011. He was formerly a director of corporate development at Google, where he helped lead an investment in Baidu.
Lightspeed China has backed the likes of Pinduoduo and Meituan, both of which now trade in Hong Kong. There have been 30 exits to date, including two IPOs so far this year: autonomous driving sensor specialist Hesai Technology listed on NASDAQ and chip designer Southchip listed went to Shanghai’s Star Market.
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