Sequoia China raises $9 billion as investors flock to big funds
- ByStartupStory | July 6, 2022
According to sources familiar with the issue, Sequoia China, managed by investment maestro Neil Shen, has secured around $9 billion for investment in new technology and healthcare, overcoming the fundraising problems that have plagued the venture capital sector. The money was raised by pensions, endowment funds, and family offices from either the United States, Europe, the Middle East, and Southeast Asia, according to the sources, who asked not to be identified since the matter is private.
Sequoia China, Despite concerns about higher regulation and an economic slump, is long-term optimistic about the country’s progress, according to the experts, and aims to invest in cutting-edge technologies that may assist improve industries such as pharmaceutical and healthcare. The investment business stands out as its Chinese venture capital counterparts struggle to seek funding amid a crackdown on the private sector and an economic slump caused by the pandemic. As investors evaluate their exposure to China, the more established funds, such as Sequoia and IDG Capital, are attracting the majority of funds, having left smaller and younger ones desperate to find backers.
According to the sources, the funds will be classified into four categories. Investors outpaced the firm by approximately 50%, but the firm elected to stay with its stated goal range, they claimed. In an emailed statement, Sequoia China refused to respond. The fundraising scheme was first published by The Information.
Chinese technology stocks have taken a blow in the last year, lowering sector valuations and encouraging investors to put their money into the country’s top investment outlets rather than less established ones. According to the people, the healthcare business, which has not yet been targeted by Beijing’s recent crackdowns, accounts for around one-third of Sequoia China’s portfolio firms. They also highlighted that technology and consumer companies account for one-third of all startups.
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