Exclusive: Qiming Ventures seeks $250-300m for second US healthcare fund

Qiming Venture Partners founding managing partner Gary Rieschel. Photo: Bloomberg

Chinese venture capital firm Qiming Venture Partners is seeking to raise $250-300 million for its second US healthcare fund, founding managing partner Gary Rieschel told this portal.

Qiming had in April this year announced the final close for Qiming US Healthcare Fund I with $120 million in commitments. It had also closed two other funds, Qiming Venture USD Fund VI ($935 million) and Qiming Venture RMB Fund V (¥2.1 billion), mopping up a total of $1.39 billion across the three new funds.

“Our first healthcare fund in the US was $120 million, and mostly from existing China LPs, and the next fund will be about $250 million, maybe $300 million,” Rieschel said in an interview.

Fundraising for the latest healthcare fund started in the last week of September. “We’ll have our first close in January and we’ll have a final close sometime in early Q2,” Rieschel said.

Qiming expects to raise at least 60 per cent of its targeted corpus ($150-180 million) for the first close, after which it can start deploying capital from the fund.

Unlike a dedicated US fund, Qiming’s healthcare investments in China are made out of its main fund. “When you look at Qiming in China, we have a fund that has three main investment areas: Core IT and Internet Consumer are roughly 55 per cent and healthcare is roughly 45 per cent,” Rieschel explained.

With over 80 companies, Qiming claims to have the largest healthcare portfolio of any venture fund in China.

According to PitchBook data, Chinese venture firms injected more capital into US life sciences and biotech this year than they did in China. The flurry of investments from Chinese venture firms can be explained by sky-high valuations in the domestic market taking on a life of their own due to a government push to promote biotech as a strategic emerging industry.

Venture firms are also attracted by the opportunity to bring biotech innovations from a rather mature US healthcare market to China, which is the world’s second-largest pharma market.

According to a Reuters report, capital from Chinese and other Asian investors made up nearly half of all investments into US biotech companies in the first eight months of this year, compared to just 11 per cent in 2016. Chinese firms had pumped in about $2.85 billion in that period, while other Asian investors put in another $1.37 billion, the report said citing PitchBook data.

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. 
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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.