Sequoia, Zhenfund team up to launch $30m VC fund

The parties announced that the full RMB200 million corpus has been evenly split between US dollars and Chinese renminbi. This structure allows the fund to invest in both China-registered companies and VIE-structured companies.

According to Sequoia and Zhenfund, "the collaboration will be a major threat to many other angel investors looking for the best deals," given the firms' experience in the space. Sequoia's global franchise has invested in companies such as Youtube, Zappos and Linkedin, and in 360Buy, Okaybuy and Meituan in China. Meanwhile, ZhenFund, founded by angel investor Xu Xiaoping, has invested in 80 start-up companies over a five-year period. It invests up to $500,000 per transaction.

"The new ZhenFund, gives me the opportunity to expand with Sequoia's experience and resources," Xu said in a statement.

Most recently, Sequoia China, with KKR and Everbright Private Equity, became a cornerstone investor in the Hong Kong IPO of China Outfitters. The three funds committed $110 million, or three-quarters of the $145 million the company is looking to raise.

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• Topics
• Greater China
• Venture
• Sequoia Capital
• China
• Venture