Sequoia Capital raises $2.35b for China-focused funds

Beijing, China. Photo: Raj Eiamworakul/ Unsplash

Silicon Valley-based venture capital firm Sequoia Capital has raised a total of about $2.35 billion for two China-focused funds – Sequoia Capital China Growth Fund V and Sequoia Capital China Venture Fund VII, according to its latest SEC filings.

The fundraising comes as the US-China trade tension rages on and US senators are calling for an investigation against a number of Chinese firms, including those that Sequoia Capital has invested in.

Sequoia Capital China Growth Fund V, the firm’s largest China growth fund to date, has gathered $1.8 billion, twice as much as the fourth fund that closed in 2017. The fund, which was launched in June 2018, has so far attracted 130 investors, the filing showed.

Sequoia has also secured $549.5 million in commitments for China Venture Fund VII from 128 investors. The fund was also launched in June last year.

The firm, which is led by Doug Leone, Michael Moritz, Roelof Botha, and others, did not disclose the target and the date of the final close for the two funds.

Sequoia is an investor in some of China’s most successful startups, such as Alibaba, Ant Financial, Yitu, TikTok, ByteDance, and JD.com. In the US, the firm has backed Google, Instagram, LinkedIn, WhatsApp, Dropbox, Snap, and many others.

It also operates in India and has offices in Singapore, Beijing, Hong Kong, and Shanghai. In August, the firm closed its sixth India and Southeast Asia-focused venture fund at $695 million.

Sequoia’s two funds add to the dry powder available for Chinese startups.

Recently, Vertex Ventures China, the China-focused venture capital arm of Singapore-based Vertex Ventures, closed a USD-denominated fund for investments in the Chinese market. The new fund is the largest the firm has ever raised in China, according to the company.

While foreign investors are raising China-focused funds, Ant Financial, an affiliate of Chinese technology giant Alibaba, is planning to raise about $1 billion for a new fund to expand investments in emerging markets including India and Southeast Asia.

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.

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.