Xiang He raising $350m for second China TMT-focused VC fund

Photo: Bloomberg

Xiang He Capital, a California-based venture capital firm, is raising a $350-million second fund to invest in technology, media, and telecommunications (TMT) sector in China.

Based on Xiang He’s US Securities and Exchange Commission filing, Xiang He Fund II LP seeks to be larger than the firm’s $261-million debut fund, Xiang He Fund I LP, raised in 2017. The inaugural fund had a target of $300 million.

Details about the second fund were not immediately available but the debut VC fund specializes in growth capital investments, with a focus on China’s TMT sectors.

Portfolio companies include online education startup VIPKid, on-demand delivery company Lalamove, video streaming provider iQiyi and bid data analysis firm Sensors Data.

The venture capital firm was founded by Hesong Tang, a former Vice President at Baidu who was in charge of strategic M&A and investments at the Chinese firm. Notable deals he led at Baidu include the $1.9-billion acquisition of 91 Wireless, the $306-million controlling investment into Qunar, investment into iQiyi, the $370-million acquisition of PPS, and acquisition of Nuomi.

Prior to Baidu, Tang was the Director of Strategic Investment at Microsoft Greater China. He has previously worked at Cisco and Applied Materials.

In the first nine months of 2017, TMT deals in the mainland and Hong Kong totalled $53.7 billion, covering 233 mergers and acquisitions, according to Mergermarket.

The number and amount of TMT transactions in the January-September 2017 period, however, were lower than in the same period in 2016, when 257 deals on the mainland and Hong Kong generated a total of $718 million.

The $9.2-billion partial privatisation of China Unicom’s Shanghai-listed parent has emerged as the biggest deal recorded in the TMT sectors of the mainland and Hong Kong between January and September 2017.

Also Read:

China’s TMT-focused Meridian Capital launches $305m fund

Vertex launches $200m China VC Fund III

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.