BAI Capital Targets China’s Globalizing Startups With Fresh $700M Fund

November 28, 2022
BAI Capital

Earlier this year, the US based venture capital firm BAI Capital announced it had raised $700M for a new fund to back Chinese startups that are seeking globalization.

The firm’s strategy is to help Chinese companies develop and invest in new markets, especially those in the US, Canada and Europe. Several external limited partners have already joined the fund.

BAI Capital raises $700M to back Chinese companies

BAI Capital

Founded as an investment arm of media mogul Bertelsmann, BAI Capital has invested in over 200 startups. The new $700 million fund will be used to invest in a wide variety of sectors, including financial technology, content, and retail. The firm is also looking to expand in Europe. It is planning to open offices in Berlin and Singapore.

The new fund will also focus on companies that are looking to expand internationally. BAI has already invested in the electric-vehicle maker Nio and Southeast Asia’s popular livestreaming app Bigo.

The firm has also bankrolled China’s shared bike pioneer Mobike. BAI Capital has also invested in several large insurance companies.

Other investments include the largest independent live shopping platform in the U.S., Whatnot, which has participation from YC Continuity, Andreessen Horowitz, and BOND.

The firm has also been a participant in several notable IPOs. The latest round was led by DST Global and YC Continuity. The company also has a partnership with Amazon Lending.

The firm’s portfolio includes companies such as Perfect World Pictures, which specializes in high-end Chinese television dramas. The company has also ventured into the English-language film sector.

Founded in 2007, Perfect World Pictures has a listed share on the Shenzhen Stock Exchange. It is also planning to merge with its corporate parent, Perfect World Co. Ltd.

BAI Capital: External limited partners join the fund

Boosted by its sultry parent company Bertelsmann, BAI Capital has recently announced it will be pumping $700 million into China’s best and brightest tech startups and scaled up its game from a mere two to seven partners.

The funds will be split into three separate vehicles, each focusing on a specific subset of the tech industry.

Notable investments include Southeast Asia’s newest live streaming app, Bigo, and China’s shared-bike innovator, Mobike.

The company has also announced that it will be doubling down on its existing presence in Singapore by setting up shop in a new office building there. Its latest round of big bucks was also bolstered by the closing of its largest fund to date, a $3.2 billion venture fund, Qiming Ventures.

BAI Capital’s strategy

Despite its origins in the German media mogul Bertelsmann, BAI Capital is a seasoned veteran, boasting a portfolio of over 200 tech companies.

The fund’s most recent round of funding came with the blessings of Bertelsmann’s parent company, making it one of the top enterprise players in China.

This new round of funding will go towards helping Chinese companies that are making inroads into the global market. It also demonstrates the company’s commitment to diversifying its investment portfolio.

The fund has already made several high profile investments. Among its more notable offerings are the e-commerce unicorn of a company, Meituan, and the shared bike king, Mobike.

The company has also recently announced plans to open up offices in Singapore and Berlin. With the new funds in hand, the company is ready to take on its largest challenge to date: helping Chinese companies make inroads into foreign markets.

While the new round of funding is a boon for the company, it may take some time to find its feet. With a portfolio of more than 200 companies and over $3.2 billion in assets under management, the company isn’t afraid to get its hands dirty.

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News · Technology · Technology & Computing

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