HSG is raising a continuation fund that would value ByteDance at between $350bn and $370bn, according to a report by Reuters citing people familiar with the matter. The continuation fund will reportedly be dominated by ByteDance holdings.
HSG owns just over 11% of the company, making it one of the TikTok owner’s largest external shareholders, although it remains unclear how much of that stake will be transferred into the new vehicle. Limited partners in the maturing funds will be given the option to sell their interests to incoming investors as part of the process. Trade publication AVCJ first reported the existence of the continuation fund.
The valuation range is above levels implied by ByteDance’s recent employee share buybacks, which were conducted at just over $330bn, but below a $480bn valuation indicated by a secondary market transaction in November. ByteDance’s valuation has been supported by continued revenue growth, with 2025 profit potentially reaching around $48bn.
HSG, formerly known as Sequoia Capital China, first invested in ByteDance in 2014 and separated from Sequoia’s US business in 2024.
