China’s investment environment might have chilled in the past six months, but that hasn’t stopped IDG Capital Partners and Breyer Capital from teaming up to raise one of the largest VC funds in the country.
The $1 billion USD IDG Capital Fund III will target growth stage startups in technology, healthcare, media and energy, according to a joint announcement. The fund is seeking to invest in local startups as well as startups entering the Chinese market.
“China continues to represent tremendous long-term investment opportunities,” said veteran investor and Breyer Capital founder Jim Breyer. “Particularly in companies applying machine-learning and artificial intelligence to revolutionize a multitude of industries.”
IDG, which entered China in 1993, is an early investor in some of China’s biggest internet companies, including Tencent, Baidu, Xiaomi and Sohu. Breyer Capital is a well known Silicon Valley-based firm that counts Facebook among its early investments.
“I have invested in China with the IDG team for over a decade and have been continually impressed by the caliber, creativity and drive of Chinese entrepreneurs,” said Mr. Breyer in the joint release.
Mr. Breyer’s old firm, Accel Partners, has previously partnered with IDG, though the latest fund is their biggest collaboration to date.
IDG Capital Fund III will focus on more mature startups, paralleling the current risk averse trends in China’s investment ecosystem. While funds for early-stage companies have contracted, the country’s later-stage startups have continued to attract multi-billion USD rounds at engorged valuations.