Home News Joy Capital closes $700M for early-stage investments in China

Joy Capital closes $700M for early-stage investments in China


Joy Capital, the venture financing firm that’s backed Luckin, NIO, Mobike and other investor darlings at China, simply raised $700 million for a new fund focusing on early-to-growth stage startups.

Launched in 2015 with a group of former investors in Legend Capital, the investment arm of PC manufacturer Lenovo’s parent company, Joy Capital made the news (in Chinese) on Monday. It didn’t identify the partners but said they include “leading pension funds and insurance providers. Those are counted by its pool of investors from endowment budget that are education-focused wealth capital, family funds and parent funds.

The new money fostered Joy’s total tally to over 10 billion yuan ($1.45 billion) under control, with a focus on backing cutting edge technologies and companies involved with the digital update of China’s conventional sectors, or what Joy’s heritage associate Liu Erhai (pictured above) dubbed the “new infrastructure” in an op-ed for its China Securities Journal. Targets may include the likes of online car rental programs logistics businesses or apps.

As a fund, Joy Capital has up to now achieved a couple of outcomes. One of its portfolio businesses NIO became China’s first electric vehicle startup to go people from the U.S. for a competition to Tesla. It’s also funded Luckin, the Starbucks nemesis from China which floated from the U.S. just 18 months after beginning. The fund’s other big wins include Mobike, the bike-sharing pioneer that was sold to Meituan Dianping for about $ 2.7 billion and hastened house-sharing unicorn Danke Apartment.

Joy Capital’s fresh increase arrived in a period when Chinese venture investors are coping with a money dip amid a cooling market exacerbated by the expansion of U.S. tariffs. We reported that private equity and venture capital firms in the nation raised 30% less in the first six months of 2019 compared to a year before, and the number of investors who managed to entice fundings was down 52 percent at precisely exactly the same period.

China startup deals psychologist as financing for investors plummets

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