Early-stage venture firm Lightspeed China Partners (LCP) announced on January 3 the closure of its fourth and largest-ever fund for China, with a combined committed capital of $560 million. The funding brings the firm’s total capital under management to $1.5 billion.

Lightspeed China’s current funding comes as China’s venture capital party begins to quiet after an exuberant 2018. Around 70 China-focused venture funds raised just over $15 billion in first 11 months of 2018, according to a study released by data provider Preqin and Insead business school, a significant drop as compared with $40 billion raised by 330 funds in all of 2016.

James Mi, founding partner of Lightspeed China, said he didn’t consider the cooling capital markets as bad news for investors and entrepreneurs. With less of a “bubble,” Mi said the chances for startups with good products and strong teams to succeed were higher.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.