Global investor Lightspeed is beginning 2019 with its largest-ever fund for China, the place it has backed a lot of new web challengers. The firm announced this week that its fourth China fund has closed with a complete capital dedication of $560 million.
The agency had an enormous 2018, with no fewer than 5 of its portfolio holding IPOs together with two of China’s up-and-coming startups which can be difficult the nation’s web institution — they’re Meituan, the tremendous app agency that focuses on deliveries, and Pinduoduo, a gaggle e-commerce firm that’s threatening Alibaba’s dominance.
Based on these successes, it’s maybe not a shock that Lightspeed has pulled in a report new fund. TechCrunch previously reported that the new fund was geared toward $360 million primarily based on filings, but it surely added extra capital to offer extra choices.
Lightspeed mentioned it has $360 million for early-stage offers geared toward Series A and Series B levels, with an extra $200 million put aside for “growth investments.” The new fund dwarfs Lightspeed’s earlier automobiles in China — the agency’s earlier two China funds every closed at $260 million whereas it raised $168 million for its debut fund within the nation in 2013.
Lightspeed Venture Partners is a well known investor that’s anchored in Silicon Valley with world funds in India, Israeli and — after all — China. Together, these funds handle round $6 billion in capital, in response to the agency.
Led by companions Chris Schaepe, Herry Han and James Mi, the China operation has backed a variety of unicorns, together with the aforementioned Meituan, which raised over $4 billion via a Hong Kong IPO last year, and Pinduoduo, which raised $1.6 billion via a U.S. listing in 2018. Other Lightspeed China IPOs from final yr have been PPDai, Rong360 and InnoLight whereas the agency additionally counts $9 billion-valued Full Truck Alliance, actual property platform Fangdd and Airbnb-like Tujia, each of that are valued within the billions, among the many extra mature bets in its portfolio.
“We believe there are plenty of new opportunities in China consumer Internet given the depth of China’s mobile payment and social networks. Innovation and entrepreneurship in the next decade will bring more China-based startups to the world stage. This will be China’s first decade of truly global innovation. Chinese entrepreneurs are now developing business plans with global expansion in mind from day one,” mentioned Han, one of many agency’s founding companions, in an announcement.
Last yr, Lightspeed Venture Partners — the U.S. entity — filed to raise a record $1.8 billion in new capital commitments. In December, it added five new partners to its client and enterprise funding groups, together with Slack’s former head of progress and Twitter’s former vice president of worldwide enterprise growth.