Oct 27, 2020 01:40 PM

China’s Gaorong Capital Raises $1.5 Billion for New Dollar and Yuan Funds

(Deal Street Asia) — Gaorong Capital, a Beijing-based venture capital (VC) firm focused on early- and growth-stage investments, has closed two funds — a new yuan-denominated fund and its fifth U.S. dollar fund — at over 10 billion yuan ($1.4 billion), the company announced on WeChat on Monday.

The new funds bring Gaorong’s assets under management to nearly 28 billion yuan, it said.

The company said the dollar fund, consisting of a $1 billion main fund and $150 million side fund, is the largest dollar fund raised by a Chinese VC. Its limited partners are from sovereign wealth funds, charity foundations, endowment funds and funds of funds (FOF).

The investors in the yuan fund include insurance companies, university endowments, large enterprises, FOFs and individual entrepreneurs.

Going forward, Gaorong will continue to invest in new consumption, new technology, corporate services, and health care technology, the statement added.

Gaorong, formerly known as Banyan Capital, was co-founded by Xiang Gao, Zhen Zhang, and Yue Bin in 2014. It makes early- and growth-stage investments in technology, media, and telecom — covering consumption, artifiscal intelligence, fintech, and enterprise services.

The firm made its $200 million dollar fund debut in 2014, followed by $360 million in 2015, $400 million in 2017, and a $500 million fund in 2018.

Gaorong also launched its maiden yuan fund at 320 million yuan in 2014. Subsequently, it closed other yuan funds for 560 million yuan in 2015, 2.5 billion yuan in 2017, and 560 million yuan in 2018.

Gaorong has invested in over 200 startups so far with over 12 portfolios going public and 20 joining unicorn clubs.

Some of the prominent projects include Nasdaq-listed Pinduoduo, New York-listed edtech firm Genshuixue, New York-listed streaming service platform, Shanghai-listed cleaning robot producer Roborock, and internet insurance group Waterdrop.

This story was first published in Deal Street Asia.

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