Shanghai-based early-stage venture capital firm Linear Capital on Thursday announced the first close of its fourth venture fund, a USD-denominated vehicle, at $110 million.
The first close was completed on May 6 after over four months of fundraising, said Harry Wang Huai, founder and CEO of Linear Capital, in a minute-long video posted on Linear’s WeChat official account.
The fourth fund received re-ups from all major existing limited partners (LPs) of Linear, including an asset management firm, a fund of funds (FOF), companies across multiple sectors, and other investment institutions in Asia, as well as founders of internet companies in China and abroad. The vehicle also obtained support from new investors such as endowment funds, Linear Capital said.
“We believe that frontier technologies, such as data intelligence technology as [a] core example, will bring in [a] huge boost to China’s ongoing industrial upgrading endeavour and efficiency revolution,” said Wang.
Linear was founded in 2014 by former Facebook exec Wang, and Michael Zhang Chuan, a former executive at Chinese e-commerce major JD.com as well as Alibaba’s online shopping sub-brand Tmall. The VC firm now manages four funds with about 2.5 billion yuan ($352 million) in total assets under management (AUM).
The firm, which primarily invests in startups in the data intelligence and frontier technology fields, typically invests $3 million to $5 million in startups at seed and Series A stages of financing.
Linear claims to have backed over 80 startups worth a combined $12 billion so far. Its portfolio companies are predominantly based in China; it has also made investments in Silicon Valley and Southeast Asia.
Its portfolio companies include AI major Horizon Robotics, cloud-enabled home décor unicorn Kujiale.com, AI-based risk management service Tongdun Technology, augmented reality (AR) products developer Rokid, and Hong Kong-based fintech firm Neat.
In November 2018, Linear closed its RMB-denominated third fund at 500 million yuan ($73 million) from LPs including founders and executives at Facebook, Twitter, LinkedIn, as well as Chinese internet giants Baidu, Alibaba and Tencent.