Chinese healthcare VC Redhill Capital hits first close of second RMB fund

Liede Bridge, Guangzhou, China. Source: Lycheeart/Unsplash

Chinese venture capital firm Redhill Capital on Wednesday announced that it has reached the first closing of its second RMB-denominated fund as the company continues to focus on investment opportunities in China’s healthcare industry.

Its former limited partners (LPs) re-upped in the new fund, along with new investors including publicly traded companies, family offices and individual investors, said Redhill Capital in a statement.

The company did not reveal how much it raised in the first closing and the ultimate target for the second fund. It did not immediately reply to DealStreetAsia’s inquiries.

Redhill Capital was created in early 2018 by Cherry Lu Qinchao, a former partner at Sequoia Capital China, and Frank Su Zhenbo, previously a managing partner at Shenzhen-based healthcare VC Share Capital. It invests in medical apparatus and instruments, diagnostic reagents, healthcare AI, innovative drugs, and new-generation medical services.

Redhill Capital was created in early 2018 by Cherry Lu Qinchao (left) and Frank Su Zhenbo (right).

Its debut RMB fund raised a total of 505 million yuan ($73 million) in capital commitments, according to a document filed by Shenzhen-listed dietary supplements BY-Health, an LP of the first fund, with the stock exchange in May 2019.

BY-Health committed 60 million yuan ($9 million) to the predecessor fund, while Sequoia Capital China agreed to invest 30 million yuan ($4 million) through an affiliate.

Other LPs in the first fund included a 17.85-billion-yuan ($2.59 billion) fund managed by China’s largest state-owned investment firm State Development & Investment Corporation (SDIC), Wens Investment, the investment platform of China’s Wens Foodstuff Group, among others.

Guangzhou-based Redhill Capital has grown into a team of over 10 people in the past two years with investments in 14 startups so far. Its portfolio companies include anti-cancer academic platform Liangyihui, and AI-enabled healthcare firm Vistel.

The company said in the statement that seven of its portfolio firms completed subsequent financing rounds and two firms filed for an initial public offering (IPO) on China’s STAR Market and ChiNext board in mid-2020.

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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.