BAI Capital, the renowned China-focused venture capital investment firm, formerly known as Bertelsmann Asia Investments, has raised $700 million to support Chinese companies that are part of the country’s structural reform as well as those growing overseas.
The announcement follows the closure of several other major funds, quelling speculation that foreign capital for Chinese technology is drying up amid an economic slowdown. Sequoia Capital China recently landed $7 billion to bet on Chinese tech companies at all stages. Qiming Ventures raised $3.2 billion. And IDG Capital took in $900 million.
BAI Capital was founded in 2008 as the investment arm of German media mogul Bertelsmann and has become one of China’s leading venture capital players with a portfolio of over 200 technology companies. Its notable investments include electric vehicle upstart Nio, popular Southeast Asian live-streaming app Bigo and Chinese bike-sharing pioneer Mobike, which was acquired by Meituan.
The latest closing marks the first time that BAI Capital has brought in external sponsors, including sovereign wealth funds, major insurance companies, internet giants, funds of funds, in addition to capital from its parent company. Bertelsman.
The new fund, according to BAI’s announcement, focuses on helping Chinese companies in retail, fintech, content, media, as well as hot web3 and metaverse areas that are growing in the future. global scale. BAI opens new offices in Singapore and Berlin.
At the same time, the fund will also seek domestic opportunities in deep technologies such as renewable energy, autonomous driving and software-driven industrial upgrade solutions.
Global expansion is no small feat for any startup, not to mention Chinese companies that risk being caught in the snare of rising geopolitical tensions. BAI Capital founding partner Annabelle Yu said this in a statement:
“BAI Capital will continue to leverage Bertelsmann’s enormous global network in media, education and services, particularly its deep influence in Europe, and will join forces with more limited partners to play to the unique advantage from BAI. In an increasingly complicated political and economic environment, we will do our best to serve entrepreneurs with global ambitions and help them succeed in a context of international competition and cooperation.