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.