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.
CRCM Ventures provides seed funding and invests in early-stage companies in Silicon Valley and China. The firm focuses on mobile, cloud computing, and big data technologies across the technology, media, and telecom, consumer services, and enterprise software sectors. The firm has offices in Beijing, Hong Kong, Palo Alto, and San Francisco.
California: (415) 578.5700; Hong Kong: (852) 3196.7888
In May 2015, ChinaRock Capital Management, along with IDG Capital Partners, CME Group, and Seagate, provided $28 million in Series A funding to Ripple, a San Francisco-based global payment services company. In January 2014, ChinaRock Capital Management, along with Danhua Capital, Sequoia Capital, Lightspeed Venture Partners, Microsoft Ventures, and ZhenFund, provided $12 million in Series A funding to EverString, a predictive marketing technology company located in San Mateo, California.
In September 2013, ChinaRock Capital Management, along with 500 Startups, Scrum Ventures, Promus Ventures, Funders Club, TEEC Angel Fund, provided $1 million in seed funding to Binpress. Binpress, based in Mountain View, CA, brings together companies and developers to build an ecosystem around open-source code.