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.