Oct 11, 2018 (China Knowledge) - Tencent Holding’s venture capital arm is looking to raise a new dollar-denominated fund of at least USD 650 million. The money raised will be used for startups already in the company’s portfolio. At the moment, Tencent is still in the midst of gauging investor appetite before deciding on a final amount for this fund.
The fundraising comes at a time when China’s tech investment has surged. Venture deals in China has surged from USD 4.4 billion in 2013 to USD 62.6 billion in 2017. This year, China is set to surpass the U.S. in funding raised from venture deals and IPOs.
Tencent venture capital arm, which is headed by top investors Forest Lin and Jefferey Li, has invested in around 600 companies to date. Some notable companies in its portfolio include Didi Chuxing, Meituan-Dianping, Pinduoduo Inc, Tesla and Snap Inc.
Tencent itself has had a challenging year facing regulatory clampdowns from authorities and has lost more than USD 200 billion in market capitalization. The company hopes that its continued investment into tech startups will help to turn its fortunes around.
However, China’s tech sector faces an uncertain year ahead due to a slowing economy and trade tensions, with many tech companies hoping to raise as much funds now to tide themselves over the coming year.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI