VC firm Sequoia Capital China reportedly raises $9 billion
Sequoia Capital China has already surpassed its initial target of $8 billion in raising capital
By Shashank Bhardwaj
Sequoia Capital China, the Chinese subsidiary of Sequoia Capital, a crypto-centred venture capital firm, reportedly raised $9 billion for its four funds for the new startups based in China. The raised capital is reportedly the biggest sum raised by any VC firm specifically focused on Chinese tech startups.
The collected investment will be distributed to four funds: Sequoia Capital China Seed Fund III, Sequoia Capital China Expansion Fund I, Sequoia Capital China Growth Fund VII and Sequoia Capital China Venture Fund IX. The firm has plans to close the round this week, with 50 percent of the capital raised being oversubscribed.
While the other venture capital firms were facing obstacles in China to raise funds due to the crackdown on private tech enterprises and the economic downturn, Sequoia China has done a marvelous job. As investors rethink their exposure to China, prominent funds like IDG Capital and Sequoia Capital are collecting the majority of investment, causing the newly established, smaller firms to struggle and find backers.
China is facing a decline in venture capital investments due to the stricter regulations and a stock rally in the last quarter. According to Preqin, China's trade value fell by 40 percent and now is $34 billion in the first few months of 2022. On the same side, venture capital and private equity funds raised $6.2 billion, which is 90 percent less than the first few months of 2021.
Sequoia Capital has established a powerful status among venture capital firms. Along with its Beijing subsidiary, Sequoia Capital has raised more than $10 billion to invest in many Chinese startups, backing ventures like ByteDance Ltd and JD.com Inc over the last decade.
Silicon Valley-based Sequoia Capital's Chinese affiliate, Sequoia China, has been positive about the country's growth despite the increase in regulations and an economic downturn. It aims to invest in cutting-edge technology that can accelerate the development of industries like healthcare and pharmaceuticals. The firm mostly carries out its business separate from its parent firm, Sequoia Capital. It raised funds for endowment funds, family offices and pensions from Europe, the US, Southeast Asia and the Middle East.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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