BAI Capital targets China’s globalizing startups with new $700 million fund
- ByStartupStory | July 25, 2022
BAI Capital, the famous China-focused venture capital company previously known as Bertelsmann Asia Investments, recently secured $700 million to support Chinese firms involved in structural change as well as those growing internationally. The statement comes in the wake of the closure of many other large funds, putting to rest worries that foreign financing for Chinese technology is drying up due to the slowing economy. Sequoia Capital China just raised $7 billion to invest in Chinese technology startups at various stages of development. Qiming Ventures acquired $3.2 billion in funding. In addition, IDG Capital received $900 million.
BAI Capital, created in 2008 as an investment company of German media magnate Bertelsmann, has risen to become one of China’s leading venture capital firms, with a portfolio of above 200 technology startups. Its significant investments include the electric car startup Nio, the renowned live streaming app Bigo in Southeast Asia, and China’s shared bike innovator Mobike, which has been bought by Meituan. BAI Cash has taken in external limited partners for the first time, comprising sovereign wealth funds, significant insurance firms, internet titans, and funds of funds, in addition, to funds from its parent Bertelsmann.
According to BAI’s release, the new fund would assist Chinese enterprises in retail, finance, content, and media, and the hot sectors of web3 & metaverse that are spreading internationally. BAI is expanding its presence in Singapore & Berlin. Simultaneously, the fund will explore domestic prospects in deep technologies such as renewable energy, self-driving cars, and software-driven industrial upgrading solutions.
Global expansion is not an easy task for any startup, let alone Chinese companies that are vulnerable to escalating geopolitical tensions. According to Annabelle Yu, BAI Capital’s founding partner, “BAI Capital will continue to use Bertelsmann’s massive worldwide ecosystem in media, education, and service, particularly its deep reach in Europe, and join forces with more restricted partners to play to BAI’s unique edge.” We will do our best to support businesses with global ambitions and assist them in achieving success despite worldwide competition and collaboration in an increasingly difficult political and economic climate.”
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