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Asia-Focused Venture Capital Funds in Market – January 2013

by Aveline Tan

  • 25 Jan 2013
  • PE

There are 80 Asia-focused venture capital vehicles on the road, collectively seeking an aggregate $9.4bn in investor commitments. To date, 17% of the targeted capital has been raised via interim closes. Of the 42 funds that have held at least an interim close, 86% of these vehicles have held a first close and 14% went on to secure a second close. Unsurprisingly, the majority of Asia-focused venture vehicles on the road are managed by Asia-based fund managers (73%), in countries such as China, India, Singapore and Japan. The remaining vehicles are managed by fund managers based in countries such as the US, UK, Switzerland and Spain.

Sixty-nine percent of Asia-focused venture capital vehicles on the road seek to provide capital to companies across all stages of venture capital, from early stage to expansion/late stage. Twenty-one percent of Asia-focused venture capital vehicles on the road focus on early stage companies and the remaining funds solely target expansion/late stage companies.

A significant proportion (51%) of Asia-focused venture capital vehicles on the road have an allocation to China. The largest Asia-focused venture capital vehicle in market is Fortman Border Investment Fund. The fund seeks to provide venture capital to Chinese companies operating in the frontier regions of China. These frontier regions include provinces such as Xinjiang, Heilongjiang and Yunnan. It is managed by China-based fund manager Fortman Fund and seeks to raise $713mn.

In terms of industries, more than half of Asia-focused venture capital vehicles on the road have an allocation to technology (54%). One example of an Asia-focused venture vehicle targeting technology-related companies is New Hope Industry USD Fund. It seeks to raise $200mn and targets Chinese companies operating in agriculture and technology sectors. Its CNY-denominated counterpart, New Hope Industry RMB Fund closed at $146mn in 2010. Both vehicles adopt similar investment strategies and are managed by China-based fund manager Beijing Housheng Investment Management.

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