The US team of Chinese venture capital (VC) powerhouse Qiming Venture Partners is in the market to raise $300 million for its third fund, Qiming US Healthcare Fund III.
Qiming US is yet to secure any capital commitments for Fund III, according to a filing with the US Securities and Exchange Commission (SEC) this week. The VC firm did not immediately respond to DealStreetAsia’s email request for more detailed information on the new fund.
The filing was signed by Gary Rieschel, co-founder and partner of Qiming US. In 2006, Rieschel had helped create Qiming in China, before he returned to the United States in 2016 to build the firm’s operations across the Pacific Ocean. By far, he has led investments in 13 companies in the US and China that all grew to over $1 billion in market capitalisation, according to the Qiming US website.
Qiming launched its first US-based fund in January 2017 to focus on early-stage healthcare opportunities in the US and Europe. In an interview with DealStreetAsia in November 2018, Rieschel said that the team’s Qiming US Healthcare Fund I had held the final close at $120 million in April, while they were seeking to raise $250-300 million for the second US healthcare fund.
Situated in major life science hubs of Cambridge, the San Francisco Bay Area, and Seattle, Qiming US has backed a total of 22 companies, including cell therapy developer Talaris; digital health startup LetsGetChecked; medical device & digital health firm Element Science; and PlateletBio, a Harvard University spinout that makes human platelets from stem cells.
Its portfolio ARMO BioSciences, a California-based immuno-oncology firm, was acquired by New York-listed drug maker Eli Lilly and Company for about $1.6 billion in an all-cash transaction in May 2018.
In total, Qiming manages nine US dollar funds and six RMB funds with $5.9 billion in assets under management (AUM) across its teams in China and the US.
The new filing marks Qiming’s latest attempt to step up its fundraising efforts. In January 2021, Qiming announced the final close of its RMB Fund VI at 2.852 billion yuan from limited partners (LPs) such as China’s Oriza FOFs Investment Management, and state-owned conglomerate Xiamen C&D. The RMB fund came less than three months after it closed a US dollar fund, Qiming Venture Partners Fund VII, at $1.2 billion in November 2020.
The firm focuses on early- and growth-stage businesses in the TMT and healthcare sectors. To date, it has invested in over 380 companies, of which it has exited more than 130 firms through initial public offerings (IPO) or M&A. More than 40 of its portfolio firms have achieved unicorn status with a valuation of over $1 billion.
As an investor behind smartphone maker Xiaomi and food delivery giant Meituan, Qiming also backed some of China’s biggest tech and healthcare firms including online video site Bilibili, robotic vacuum cleaner brand Roborock, insulin maker Gan & Lee Pharmaceuticals, and clinical trial and research firm Tigermed.