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.
IDG Capital provides seed, venture, and growth-stage funding for companies in Internet, mobile and tech, modern services and brand, healthcare, industrial tech and resources, and tourism and property. After its recent acquisition of International Data Group (USA), the firm has expanded to Boston, San Francisco, India, Vietnam, and South Korea.
Beijing: (010) 6526.2400; Shanghai: (021) 6094.8000; Guangzhou: (020) 8412.0331; Hong Kong: (852) 2529.1016; Shenzhen: (755) 8280.5462; Hangzhou: (571) 8524.2211
In May 2015, IDG Capital Partners, along with ChinaRock, CME Group, and Seagate invested $28 million Series A funding in Ripple, a San Francisco-based global payment services company.
In January 2017, IDG Capital Partners acquired International Data Group (IDG) for around $1 billion. IDG is a media, data, marketing services, and venture capital entity.