Foxconn-backed HCM Capital in talks to raise much larger tech fund

The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in New Taipei City, Taiwan March 29, 2016. REUTERS/Tyrone Siu/File Photo

Foxconn Technology Group-backed investment firm HCM Capital is in early-stage talks to raise a much larger new fund, as it looks to invest in startups in Silicon Valley and other emerging tech hubs across the world, the fund’s head said.

In an interview with Reuters, HCM founder and managing partner Jack Lee said he could not yet specify the size of the new fund that it plans to raise, but said it could be a “hundred million more or up to several hundred” million more than HCM’s previous fund which invested in a number of blockchain and other tech startups.

Taking foreign exchange rates into account, the previous fund had capital for investment of $60 million to $70 million, Lee said.

Lee said the launch date for the new fund should be decided by the end of the year. The new fund will also focus on backing blockchain startups and other futuristic tech ventures.

Foxconn Technology, a unit of the world’s largest contract electronics manufacturer Hon Hai Precision Industry, is one of the investors in giant Japanese firm SoftBank’s $100-billion Vision Fund.

“I feel (SoftBank) Vision Fund’s focus is more on existing and a bit older economy, such as real estate (WeWork, internet-based rides hailing apps) … while we have been promoting the decentralized digital economy powered by blockchain for years,” Lee said.

SoftBank has said that Foxconn is among a number of major tech investors to have signed commitments to invest in a second Vision Fund, whose future has been questioned since the souring of the Japanese firm’s $18.5-billion investment in WeWork.

Lee, who was managing director of the business unit, Foxconn Financial Service Platform, before launching HCM Capital in 2015, declined to comment on any discussions with SoftBank.

Reuters

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.