The firm, which is largely Silicon Valley-based . works differently from Sequoia CapitalThe money was raised from pensions, endowment funds and family offices from the US, Europe, the Middle East and Southeast Asia, people asked not to be named, as the matter is private.
Sequoia China The people said the country has a long-term positive on growth despite increased regulation and concerns about an economic slowdown, and plans to invest in cutting-edge technology that can help advanced industries, including pharmaceutical and healthcare.
The investment firm stands as venture capital peers in China struggle to raise cash during a crackdown on private enterprise and an economic downturn brought on by the pandemic. As investors reevaluate their China exposure, more established funds such as Sequoia and IDG Capital are attracting massive funds, leaving smaller and newer ones struggling to find backers.
The money will be allocated to four funds: Sequoia Capital China Expansion Fund I, Sequoia Capital China Seed Fund III, Sequoia Capital China Venture Fund IX and Sequoia Capital China Growth Fund VII, the people said. He said investors oversubscribed by around 50%, but the firm decided to stick to its original target range.
Sequoia China declined to comment in an emailed statement. The Information previously reported the fundraising plan.
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Sequoia Capital and its Beijing affiliate have spent more than $10 billion crowdfunding China for more than a decade startupsupport of choice ByteDance Ltd. and JD.com Inc. The ventures aim to strike at the rich out there along with becoming a powerhouse brand among firms.
Investment prospects in China are shrouded in uncertainty, as regulatory actions on both sides of the Pacific Ocean squeeze the country’s technology industry and create unpredictability for its financial backers.
Putting aside a stock rally that began on the mainland last quarter, China still faces a decline in venture capital investment, despite what was once known as Silicon Valley’s primary rival.
deal dry
According to data from research firm Prekin, the value of deals in the country fell nearly 40% from a year ago to $34 billion in the first five months of 2022. Meanwhile, venture capital and private equity funds raised $6.2 billion, a decline of more than 90% compared to the first five months of last year.
Sugar Technique Shares have tumbled over the past year, driving down valuations in the industry and prompting investors to allocate money to the nation’s top investment outlets instead of less established ones.
The healthcare industry, which has not yet been the focus of Beijing’s recent crackdown, represents about a third of Sequoia China’s portfolio companies, the people said. He said technology and consumer startups also account for one-third.