Sequoia Capital China, the Chinese affiliate of cryptocurrency-friendly venture capital firm Sequoia Capital, is raising $9 billion for its four new funds focused on Chinese startups.
In raising capital, Sequoia China has already exceeded its initial target of about $8 billion, the Information news agency reported on July 4, citing two people familiar with the matter.
The final amount is believed to be the largest pool of capital raised by a single VC firm focused on Chinese technology startups, the report said.
The funding round signals a growing investor appetite for tech investments in China, which is coming despite a major fall in the stock market, as well as China’s crackdown on tech companies, which has led to a slowdown in investments by Sequoia’s global competitors. .
Sequoia China is reportedly planning to close the round sometime this week, with the 50% increase being oversubscribed.
According to some local investors, major VC firms such as Sequoia China and Hillhouse were still raising money, despite several US funding and pension funds to halt Chinese investments in 2022.
“Only Sequoia and Hillhouse can raise money from international investors, they see it as less risky, such as investing in index funds,” a Beijing-based investor reportedly said.
Founded in 2005, Sequoia China is one of the largest tech VC firms in the world, best known for investing in TikTok operator ByteDance.
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Sequoia China has also backed several crypto and blockchain-related firms, including troubled Asian crypto lender Babel Finance, which halted withdrawals in mid-June amid the ongoing crypto debt crisis. As previously reported, Sequoia Capital China was among the key investors in a $40 million Series A funding round at Babel Finance in May 2022.
Sequoia China previously led funding rounds for other industry platforms such as cryptocurrency wallet dBank in 2021.