InnoVen Capital, an Asian provider of venture debt for high growth, venture-backed technology companies, launched its second China fund — InnoVen China Fund II, a USD-RMB Dual Currency Fund.
The fund targets a total size of US$250m, and an initial close of approximately US$130m has been completed. The anchor investors for the first close are InnoVen Capital, and two local Chinese government entities. With the collective backing of both USD and RMB LPs, InnoVen Capital China Fund II is now positioned to expand its geographical coverage of high-growth and innovative startups to more cities and regions in China.
InnoVen China has been a key player in China’s venture debt market since 2017, having supported over 100 high-growth startups, with cumulative disbursements exceeding US$400m, of which 9 companies became unicorns and 6 were successfully listed.
InnoVen China Fund I was established in November 2021 and to date, has invested in over 20 high-growth and innovative startups, including Mininglamp Technology, NextVPU, CBMG, Moodytiger, ANXIN, Casstime, Weiyun and Autowise.ai. Almost two-thirds of the portfolio companies have successfully secured subsequent rounds of financing. The fund achieved its first equity exit in 2023.
Commenting on the launch, Beng Teck Ong, CEO of InnoVen Capital Group, said: “In an environment where the global economy is facing multiple challenges and uncertainties, we continue to see many lending opportunities to high growth technology companies in China. The Group has therefore decided to increase our anchor commitment to the new China fund. With a larger fund size and expanded geographical coverage, the new China fund will be well positioned to support outstanding founders throughout the country in their next phase of growth.“
Yingxue Cao, Managing Partner of InnoVen China Fund, added: “Over the past few years, InnoVen China has been deeply involved in China’s venture debt market and the development of its New Economy. I am delighted that our differentiated strategy has once again been welcomed by long-term value investors. With the second fund, we will continue to adhere to ESG investment principles, and strategically focus on deep tech, enterprise services, consumer, healthcare, and carbon-neutral sectors. Leveraging our extensive networks in the entire ecosystem, we will support the innovation of new technologies and business models and contribute to the dynamism of China while delivering superior returns to our investors.“
InnoVen Capital is a joint venture between Seviora (a wholly owned subsidiary of Temasek) and United Overseas Bank. With offices in India, China and Singapore, the firm actively supports talented founders in Asia in growing their businesses.