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.