Former Kleiner Partner to Seek $250 Million in Funding, Sources Say

(Bloomberg) — China Creation Ventures (CCV), an investment outfit founded by former Kleiner Perkins Caufield & Byers partner Zhou Wei, is seeking to raise about $250 million in funding, according to people familiar with the matter.

CCV, which was founded in 2017, is planning to raise a second U.S.-dollar fund to focus on early-stage Chinese startups, the people said, requesting not to be named because the matter is private. Yu Yi, a spokeswoman for CCV, declined to comment in a text statement.

Zhou counts e-commerce giant JD.com Inc., online podcast and radio service Ximalaya and internet finance platform Creditease among his investments. His venture capital firm, founded together with a team of former KPCB portfolio managers, is mustering more ammunition at a time Chinese startups have struggled to attract backing.

Chinese capital-raising is slowing after a five-year surge in VC activity, in part because risk-averse institutions gravitate toward top-tier investment targets while an escalating trade war depresses the world’s No. 2 economy. The value of investments in the country tumbled 77% to $9.4 billion in the second quarter from a year earlier, according to market research firm Preqin.

CCV has deployed about-two thirds of its first U.S. dollar fund, which pooled about $200 million. About 90% of those deals were series A investments — typically the first significant round of venture capital funding — where it held a board seat, according to a company statement. The firm also operates a 1.5 billion yuan ($218 million) local-currency fund, giving it a total of roughly $400 million of assets under management. With a focus on China and Southeast Asia, CCV has four portfolio companies that are seeking a public offering before the end of 2020, the company said.

Contact editor Yang Ge (geyang@caixin.com)