Sequoia China is well-known for its support of many crypto companies, including Babel Finance, a troubled crypto lender that stopped withdrawals in June.
Sequoia Capital China, the Chinese affiliate of cryptocurrency-friendly venture capital firm Sequoia Capital, is about to raise $9 billion for its four new funds focused on Chinese startups.
Sequoia China raised capital more than its original target of $8 billion. This was reported by The Information news agency, citing two sources familiar with the matter.
According to the report, the final amount raised is the largest ever by a single VC firm focusing on Chinese technology startups.
Despite a significant decline in the stock and China’s crackdown against tech companies, this funding round shows the growing investor interest in tech investment in China. This has triggered a slowdown of investments by Sequoia’s global competitors.
According to reports, Sequoia China plans close the round sometime in the week. 50% of the raise has already been oversubscribed.
Local investors claim that major VC firms such as Sequoia China or Hillhouse are still raising capital despite the fact that many American pension funds and wealth have halted China investments for 2022.
One Beijing-based investor claimed that only Sequoia or Hillhouse could raise money from international investors at the moment. They see it as lower risk than making an investment in index funds.
Sequoia China was founded in 2005 and is well-known for its investments in TikTok operator ByteDance.
Sequoia China also supported a number crypto- and blockchain-related companies, including Babel Finance, an Asian crypto lender, which stopped withdrawing funds in June amid the ongoing crypto lending crisis. As previously reported, Sequoia Capital China was one of the lead investors during a $40 million Series B funding round in Babel Finance (May 2022).
Sequoia China also led funding rounds in the past for other industry platforms, such as DeBank in 2021.