Venture investment firm BAI Capital has reportedly raised USD 700 million to support China's globalizing startups as well as companies that are part of the nation’s structural reform.
The announcement follows the closure of major funds, putting an end to speculations that a slowed economy has dried up the Chinese tech firms’ foreign capital.
Recently, Sequoia Capital China obtained$7 billion to invest in Chinese tech firms at various stages. Meanwhile, IDG Capital raised $900 million and Qiming Ventures banked $3.2 billion.
With the latest capital raise, BAI has brought in external limited partners for the first time, including large insurance companies, sovereign wealth funds, internet giants, funds from investment funds, and capital from Bertelsmann, its parent company.
As per BAI’s announcement, this fund will help Chinese firms from fintech, retail, media, content, and trending areas of metaverse and web3 that are expanding worldwide. BAI is establishing new offices in Berlin and Singapore.
Simultaneously, the fund will unearth opportunities in domestic deep technologies like autonomous driving, renewable energy, and software-based industrial solutions.
Annabelle Yu, BAI Capital’s Founding Partner has remarked that it is difficult for any startup to attain global expansion, including Chinese businesses that are potentially impacted amid rising geopolitical tensions.
Yu added that BAI Capital will leverage Bertelsmann’s immense global network in education, media, and service, particularly its extensive influence in Europe, besides collaborating with limited partners that would benefit the company.
Founded in 2008, BAI Capital has grown to become one of China’s top venture players with a portfolio of more than 200 tech firms out of which close to 20 have IPO’d and 40 have achieved unicorn status.
Some of its notable investments include Southeast Asia’s popular live-streaming app Bigo, electric vehicle upstart Nio, and Mobike, China’s pioneer in shared bikes which was earlier purchased by Meituan.
Source credit:
https://techcrunch.com/2022/07/24/bertelsmann-asia-bai-capital-700-million-fund/
