November 26, 2022

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Regardless of funding crunch and tech crackdown, Sequoia Capital China pulls in $9Bn in recent capital

At a time when startups and corporations the world over are struggling to lift funds and stay financially wholesome amidst powerful market situations, Sequoia Capital China has efficiently raised $9 billion in recent capital to additional its investments in Chinese language startups, The Info reviews.

Sequoia Capital China, the Chinese language affiliate of Silicon Valley-based VC agency Sequoia Capital, has secured the funds from pensions, endowment funds, and household places of work from the U.S., Europe, the Center East, and Southeast Asia.

Based on folks within the know, the spherical was oversubscribed by 50%, and Sequoia Capital China had truly acquired over $12 billion, which exceeded its preliminary goal of practically $8 billion. The Info notes that this could possibly be the pool of capital ever raised by a single enterprise capital agency to wager on Chinese language tech upstarts.

Evidently the recent spherical of capital will likely be utilized to additional the agency’s investments within the Chinese language startup sector, particularly in deep tech, client tech, and healthcare, throughout all phases. This may add to the over 900 corporations it has funded in China up to now, together with agriculture-based tech platform Pinduoduo and supply platform Meituan.

In accordance with this objective of driving investments in Chinese language companies, the newest bout of funding will likely be allotted to 4 separate funds. They’re the Sequoia Capital China Growth Fund I, Sequoia Capital China Seed Fund III, Sequoia Capital China Enterprise Fund IX, and Sequoia Capital China Development Fund VII. These funds will goal companies from seed rounds to serving to them develop and develop.

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The increase is a major one, and never only for the quantity of capital raised. China is hardly the best marketplace for buyers proper now, particularly because of COVID-19, an financial slowdown, and a strict crackdown on China’s enterprise behemoths akin to Alibaba and Tencent. Current occasions have seen corporations akin to Amazon stop a number of of their providers and pull them in a foreign country.

On the worldwide stage, issues are hardly significantly better. Fears of an financial recession and cooling investor curiosity have seen a funding crunch within the startup sector, which has seen many corporations resort to mass layoffs to remain wholesome and afloat in the course of the financial downturn.