Global VC firm GGV Capital targets to raise $2.5b for four new funds

GGV Capital's partners. Source: GGV Capital

Global venture capital firm GGV Capital is in the market raising a combined $2.5 billion for four new funds to focus on China, the US, and Southeast Asia, according to its latest filing with the U.S. Securities and Exchange Commission (SEC).

The regulatory filing shows that the California-based VC firm is looking to raise the capital for four vehicles, namely GGV Capital VIII, GGV Capital VIII Plus, GGV Discovery III, and GGV Capital VIII Entrepreneurs Fund.

The filing did not specify the fund sizes of the four vehicles. But a document presented at a public meeting of the Rhode Island State Investment Commission shows that GGV Capital plans to raise $1.2 billion for GGV Capital VIII, $300 million for GGV Capital VIII Plus, and another $500 million for GGV Discovery III, as reported by DealStreetAsia in September. 

This indicates that GGV Capital VIII Entrepreneurs Fund could have a target size of $500 million.

Rhode Island State Investment Corporation, which manages the assets of the pension system and non-pension related investments for the Rhode Island in the US, proposed capital commitments of $18 million in GGV Capital VIII, $4.5 million in GGV Capital III Plus, and $7.5 million in GGV Discovery III, according to the document.

The document shows that GGV Capital VII and VIII Plus will invest 45 per cent of capital in China; 45 per cent in the US; and 10 per cent in multi-stage deals in Southeast Asia and the rest of the world. GGV Discovery III plans to allocate 50 per cent of capital to China; 40 per cent to the US; and 10 per cent to Southeast Asia and internationally.

GGV Capital was founded nearly two decades ago in Singapore and Silicon Valley to provide multi-stage investment to businesses around the globe. The firm now manages 13 funds US dollar funds with a combined $6.2 billion in assets under management (AUM), as well as over 1.5 billion yuan ($224.2 million) under an RMB-denominated fund.

With five offices across Beijing, Shanghai, Silicon Valley, Singapore, and San Francisco, the firm has developed a global portfolio of companies based in the US, Greater China, Southeast Asia, India, Latin America, and Israel.

At $2.5 billion, the Fund VIII series would be significantly larger than its Fund VII series. GGV Capital had announced in October 2018 the completion of four funds at $1.88 billion in total.

The Fund VII series includes $1.36 billion in the firm’s main funds, GGV Capital VII and VII Plus; $460 million in GGV Discovery II that focuses on seed and early-stage opportunities; and $60 million in GGV Capital VII Entrepreneurs Fund, which was largely financed by entrepreneurs.

The firm had closed its initial RMB fund at over 1.5 billion yuan ($224.2 million) in May 2018.

GGV Capital, which has backed tech giants including Alibaba and Grab, typically deploys about $300 million every six months. By far, it has invested in nearly 300 startups worldwide, including over 60 companies being valued at $1 billion and higher. Thirty-nine of its portfolio firms are listed in the public market.

“This year has been a bit of a roller coaster ride,” Jixun Foo, managing partner at GGV Capital, told DealStreetAsia in an earlier interview. “What it [the pandemic] has done is what we call ‘accelerated digitisation of the economy.’ The whole digitisation effort drives up the valuation of some of our existing portfolio firms, leading to new fundraising opportunities.”

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.