Supply chain-focused Chinese VC Buhuo Ventures closes master fund at $243m

Photo: Eric Prouzet /Unsplash.com

Buhuo Ventures, a Beijing-based venture capital firm specialising in early- and growth-stage startups, announced on Tuesday that it has secured the final close of a new master fund at 1.565 billion yuan ($243 million).

The master fund comprises an 818 million yuan ($127 million) RMB-denominated fund — Buhuo’s second — and a $115 million maiden USD fund. 

In the statement, Buhuo said the capital commitments for the RMB fund came from leading Chinese financial groups, investment firms, govt-led industry funds, funds of funds (FOF), and family offices, among others. The debut dollar fund attracted limited partners (LPs) from the US besides Asia’s marquee dollar-led FOFs and family offices. 

In August last year, Buhuo Ventures completed the first close of the second RMB fund at 700 million yuan ($109 million), with half of the contributions coming from the firm’s existing LPs.

At that time, Buhuo had already invested in six startups from the fund, including in Chinese convenience store chain operator Guoshihui, in which it pumped $60 million in a Series C round in July 2020.

Three-year-old Buhuo has invested in over 30 startups. On May 17, it participated in a 100-million-yuan ($15 million) Series B round of financing in food brand Juhuakai Luwei.

This month, Buhuo completed a yuan-to-dollar fund restructuring to raise the US dollar venture capital (VC) fund at over $100 million. To create the USD fund, Buhuo transferred partial stakes from four assets including its initial yuan fund Buhuo Ventures RMB Fund I.

Buhuo’s portfolio includes engineering equipment rental platform Zhongneng United, supermarket chain brand Guoquan, and Alibaba-backed auto aftermarket platform New Carzone. Three of the fund’s investees plan to launch the initial public offerings (IPO) within a year, it said. 

Buhuo Ventures, which was jointly set up in 2017 by Zhujie Li who is a former partner at Chinese angel investment firm ZhenFund, currently manages 1.3 billion yuan ($202 million) assets through two RMB funds, besides $115 million through its USD fund. 

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.