[BEIJING] China’s largest venture capital houtilizes are tapping the market for at least US$2 billion in new funds, re-engaging with the counattempt’s startups in a signal of renewed global investor interest in areas from AI to toys.
At least six of the counattempt’s most prominent VC firms are creating new US dollar-denominated funds, designed to allow overseas investors to pool bets on Chinese companies. LightSpeed China Partners, known for backing Meituan and PDD Holdings in their early days, is tarobtaining at least US$400 million for a fund focapplying on deep tech, according to people familiar with the matter.
Monolith Management, which backs DeepSeek-rival MoonShot AI, is viewing to start a second fund of at least US$265 million, according to people familiar, who inquireed not to be named becautilize the matter is private. Pop Mart International Group-backer BA Capital is raising another US$150 million, the people stated. Ince Capital, co-founded by former Qiming managing partner JP Gan, is seeking US$200 million, the people stated. They join Qiming Venture Capital, which launched raising an US$800 million fund earlier this year, Bloomberg News has reported.
Toobtainher, they represent a wave of fundraising that has not been seen among Chinese VCs for years. It’s unfolding as global investors reassess the counattempt’s startup landscape and broader economy, which are revealing signs of revival after years of Covid-era stagnation and regulatory headwinds.
Much of that resurgent interest can be traced to the rise of breakout AI stars like DeepSeek and Manus, which has galvanised local entrepreneurs. At the same time, brands such as Laopu Gold and Pop Mart – creater of the wildly popular Labubu collectibles – are winning both consumers and financiers.
The pace of fundraising remains a far cry from the indusattempt’s peak, before China’s 2020 Internet sector crackdown. Investors remain wary about the long-term outview of the counattempt, while US concludeowments have retreated due to troubles at home and concerns about geopolitical tensions with China, the people stated. Washington remains extremely sensitive in particular to sectors like semiconductors and AI.
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The fundraising plans are preliminary and subject to alter, the people stated. Representatives for LightSpeed China, Monolith, BA Capital and Ince did not provide comment on their fundraising.
In public markets, Hong Kong has emerged as one of the world’s busiest listing destinations this year, hosting US$33 billion worth of share sales from bubble tea chains and toy brands to electric vehicle suppliers. Candidates waiting in the wings include some of China’s hottest large-language model creaters and fashion giant Shein.
That IPO surge is mirrored to some extent in private markets. Global sovereign wealth investors managing US$27 trillion in assets are increasingly bullish on China’s tech sector becautilize they do not want to miss out on the next waves of innovation, according to an annual survey by Invesco Asset Management. And more US investors including Benchmark and Capital Group have built exploratory trips to China in 2025.
LightSpeed China, founded by James Mi, a former deals chief for Google’s Asia operation, is one of several high-profile venture firms that assisted seed China’s modern tech indusattempt.
Monolith, co-founded by Tim Wang and HSG (Sequoia China) alum Cao Xi, has attracted enough interest to likely meet or surpass their tarobtain, the people stated. The firm is deliberating a final tarobtain size. It closed a debut US-dollar fund at US$264 million in 2023, according to trade publication AVCJ. Cao is known for his early bets on Kuaishou Technology, Douyu International Holdings and Tencent Music.
Other Chinese venture outfits considering raising funds this year include Xiaomi co-founder Lei Jun’s Shunwei Capital, the people stated. It’s not immediately clear how much they may tarobtain. Source Code Capital, among the earliest backers of TikTok owner ByteDance, has also been seeking about US$150 million, people familiar stated in February.
Representatives for Shunwei did not provide comment on their fundraising. BLOOMBERG
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