Lightspeed is starting 2019 with its largest-ever fund for China, the place it has backed a few new information superhighway challengers. The firm announced this week that its fourth China fund has closed with a total capital commitment of $ 560 million.
The company had a large 2018, with no fewer than five of its portfolio keeping IPOs including two of China’s up-and-coming startups that are challenging the country’s internet establishment — they’re Meituan, the tremendous app enterprise that focuses on deliveries, and Pinduoduo, a gaggle e-commerce enterprise that’s threatening Alibaba’s dominance.
in keeping with these successes, it is most likely not a surprise that Lightspeed has pulled in a record new fund. TechCrunch up to now suggested that the brand new fund changed into geared toward $ 360 million in line with filings, nonetheless it added extra capital to give extra alternatives.
Lightspeed referred to it has $ 360 million for early-stage deals aimed toward sequence A and sequence B ranges, with an further $ 200 million set aside for “growth investments.” the new fund dwarfs Lightspeed’s old vehicles in China — the enterprise’s old two China dollars each and every closed at $ 260 million whereas it raised $ 168 million for its debut fund within the country in 2013.
Lightspeed venture partners is a familiar investor this is anchored in Silicon Valley with global money in India, Israeli and — of direction — China. collectively, these cash control round $ 6 billion in capital, in response to the firm.
Led by way of companions Chris Schaepe, Herry Han and James Mi, the China operation has backed various unicorns, including the aforementioned Meituan, which raised over $ four billion via a Hong Kong IPO last year, and Pinduoduo, which raised $ 1.6 billion by means of a U.S. list in 2018. different Lightspeed China IPOs from last 12 months have been PPDai, Rong360 and InnoLight while the company also counts $ 9 billion-valued Full Truck Alliance, precise property platform Fangdd and Airbnb-like Tujia, both of which are valued in the billions, among the many more mature bets in its portfolio.
“We trust there are loads of new alternatives in China buyer information superhighway given the depth of China’s cellular fee and social networks. Innovation and entrepreneurship in the next decade will convey greater China-primarily based startups to the realm stage. This could be China’s first decade of really global innovation. chinese language entrepreneurs are now establishing enterprise plans with global enlargement in intellect from day one,” noted Han, one of the firm’s founding companions, in an announcement.
last yr, Lightspeed venture companions — the U.S. entity — filed to carry a record $ 1.eight billion in new capital commitments. In December, it delivered five new partners to its client and commercial enterprise investment teams, together with Slack’s former head of boom and Twitter’s former vice president of international company building.