Leveraged buyouts, growth capital, angel investments, and seed funding—these private transactions take place, largely out of the public’s eye, not only in Connecticut or Silicon Valley, but also in Beijing, Shenzhen, and Shanghai.
In 2016, China’s private equity (PE) and venture capital (VC) firms raised over $70 billion, more than 20% of total such funding globally. At the same time, these firms also deployed capital to the tune of $223 billion, accounting for more than 70% of global PE/VC investments.
As late comers, these Chinese firms have rapidly grown into formidable financiers. Most Chinese PE firms are particularly interested in products and services that can be commercialized and scaled up quickly in China. They tend to invest in areas that align with China’s shift to a more consumer-driven economy. Meanwhile, Chinese VCs have been active players globally, particularly in Silicon Valley. They have focused on areas such as artificial intelligence, Internet of Things, and electric vehicles.
China Broadband Capital, founded in 2006, manages three USD funds with a total of more than $500 million assets under management (AUM) and an RMB fund, Tianjin Chengbai, with more than ¥1.4 billion ($220 million) AUM. It primarily focuses on the technology, media, and telecom sector.
Beijing: (010) 856.35888
In April 2015, China Broadband Capital, along with Fosun International, Tencent, IGlobe Partners, and Sungent BioVenture, co-led a $35 million Series B investment in Scanadu, a Silicon Valley-based health-tech company that is building a family of mobile medical products for consumers. The funding is aimed at realizing its vision of giving consumers health diagnostic tools in smartphones.
In May 2012, China Broadband Capital, along with Meritech Capital, co-led a $70 million Series D investment in Evernote, the professional organizers and digital notes company, for continued growth into different markets and product verticals, and to expand its user base.
In March 2013, China Broadband Capital, along with Menlo Ventures, New Enterprise Associates, and Mohr Davidow Ventures, co-led a $44 million Series C investment in Palo Alto-based Pluribus Networks. Pluribus is primarily engaged in hardware-accelerated network virtualization for private and public cloud data centers.