Shunwei raises $1b for third China VC fund

The Shunwei China Internet Fund III, which had a target of $500 million, was substantially oversubscribed. Lei announced the completion of fundraising on the firm's official Weibo microblog, adding that the new vehicle will invest in start-ups in the areas of mobile internet, intelligent hardware and rural internet.

Shunwei was set up in 2011 and raised $225 million for its debut fund the same year, with commitments from sovereign wealth funds, family offices, fund-of-funds and endowments. It focuses primarily on early to mid-stage investments in internet, e-commerce and social networking businesses. The firm is led by Lei and Tuck Lye Koh, formerly of GIC Private and C.V. Starr Investment Advisors.

The VC firm has now backed over 100 companies since inception. In June last year, Shunwei closed its second US dollar fund at $525 million. In February, it raised RMB1 billion ($160 million) for its first renminbi-denominated fund.

Shunwei is seen as representative of a new breed of China VC firms, started by or raised from founders of successful first-generation internet businesses. Their pedigree tends to be rooted extensive deal-sourcing networks and proven operational ability.

Lei, former CEO of Hong Kong-listed Kingsoft Corporation, founded Xiaomi in 2009. The smart-phone maker completed a new funding round of $1.1 billion in December last year. This valued the start-up at $45 billion, making it the world's most valuable VC-backed start-up. Shunwei is also an investor in Xiaomi.

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• Topics
• Greater China
• Fundraising
• Technology
• China
• Fundraising
• Technology
• TMT
• Xiaomi
• Shunwei Capital Partners