Addor Capital co-launches $146m fund to invest in China’s tech startups

Nanjing City, Jiangsu Province, China. Source: Jennifer Chen/Unsplash

Chinese venture capital firm Addor Capital has partnered with a group of domestic companies to co-launch a 1 billion yuan ($146 million) fund for investments in startups in emerging technologies, said the firm in a WeChat post on Wednesday.

Jiangsu-based Addor Capital has set up the fund, along with Jiangsu Govtor Capital Group, an investment firm created by the local government in eastern China’s Jiangsu province; brokerage firm China Industrial Securities; as well as Chinese state-owned investors Shanghai Huangpu Investment and Shanghai Jingwen Investment.

The billion-yuan fund, whose name can be directly translated to “Yida (Addor) Xinye Fund I,” will primarily back startups in the fields of AI, next-generation IT, high-end equipment, biomedicine, modern services, new materials, culture and creation, and other technologies promoted by the Chinese government.

“The year 2020 is a watershed one in Chinese history,” said Ying Wenlu, chairman, Addor Capital, in the post. “In the next decade, two reforms will demonstrate profound influences on China’s capital market and equity investment market. One is that China will continue to focus on self-innovation. And its determination and path to becoming a global tech superpower will not change.”

“Second is that China’s implementation of a registration-based IPO system, as well as further reforms and advancements of the domestic capital markets are expected to continue,” said Ying.

Since its inception in 2014, Addor Capital has built six departments to execute investments in startups’ angel rounds to growth stages. It invests in clean energy, healthcare, new materials, advanced manufacturing, consumption, culture, and TMT sectors. Apart from a strong presence in Jiangsu, Addor also has offices and affiliates in Chinese cities and provinces like Beijing, Shanghai, Guangdong, Shandong, Zhejiang, Fujian, and Anhui.

The firm had 109.7 billion yuan ($16.1 billion) in total assets under management (AUM) and made investments in 888 startups, 191 of which had gone public, as on August 2020, according to its website.

Ying told DealStreetAsia in an interview in June that Addor Capital had closed 5 billion yuan ($707 million) earlier this year for its sub-funds, including funds of funds (FOFs), venture capital funds, regional funds, and overseas mergers & acquisitions (M&A) funds.

In 2019, it had launched the overseas M&A business and an asset investment and management subsidiary in Hong Kong in a bid to buy out valuable assets in foreign countries.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.