China’s Befor Capital raises $107m via first closings of Fund III, and Fund IV

Photo by Josh Appel on Unsplash

Chinese venture capital firm Befor Capital has raised a combined 700 million yuan ($106.8 million) in capital commitments across two funds to continue its investments in the consumption upgrade, advanced technology, and modern services fields, the firm announced on Tuesday.

The capital commitments include a corpus of 500 million yuan ($76.3 million) raised in the first closing of the firm’s Fund III, and its Fund IV’s first closing at 200 million yuan ($30.5 million). After the new fundraises, Befor Capital now manages over 2 billion yuan ($305.2 million) across four funds and multiple special purpose vehicles.

Shanghai-based Befor Capital filed with the Asset Management Association of China (AMAC), a self-regulatory association of fund managers in the country, about the update on Fund III in early December. The filing for Fund IV is expected to complete in the near term, said the firm in a statement.

Existing LPs of Befor Capital’s Fund I and Fund II collectively invested over 100 million yuan ($15.3 million) in the two new vehicles. Executives at China’s Jinrui Group, which owns Shenzhen-listed textile products manufacturer Anhui Jinchun Nonwoven, also made capital commitments.

Nasdaq-listed solar cell maker Canadian Solar Inc is the major limited partner (LP) in Fund III, along with other investors including government-guided funds backed by the local governments in northern China’s Inner Mongolia and Hohhot. LPs of Fund IV include investment platforms backed by the government of eastern China’s Jingkai District, Wuxi City, and Chinese state-owned investment firm Wuxi Capital, among others.

Founded in July 2015, Befor Capital invests across the consumption upgrade, advanced technology, and modern services sectors. Some of its portfolio firms include Geoskincare, a beauty products maker owned by New Zealand-based NZ Skin Care; cloud-based marketing solutions provider Convertlab; Chinese instant noodle brand Baijia Food; Beijing-based second-hand luxury goods trading platform Ponhu Luxury; and Aixuexi Education Group, a K12 education platform that raised $200 million in a GIC-led Series D2 round in November.

The firm’s website shows that its Fund I and Fund II were established in 2015 and 2017, respectively. It did not disclose the sizes of the first two vehicles.

Befor Capital said that over 10 of its portfolio companies are in preparation for an initial public offering (IPO) and could file for a listing application in the following two years.

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.