Hong Kong-based IDG Capital is seeking to raise approximately $2bn for a new growth fund focused on consumer technology and consumer-oriented businesses, according to a report by Bloomberg citing unnamed people familiar with the matter.
The firm, an early backer of companies including Tencent Holdings and Coinbase Global, is understood to have begun fundraising around two months ago and is targeting a first close before the end of 2026.
Bloomberg’s sources said the vehicle will primarily target consumer and technology-related investments in markets including China. The fundraising effort forms part of a broader resurgence in China-focused private capital activity, as venture capital and private equity managers return to the market to capitalise on renewed investor appetite for sectors such as artificial intelligence, biotechnology and consumer innovation.
A spokesperson for IDG Capital reportedly declined to comment.
Several China-focused fund managers have recently launched dollar-denominated fundraising campaigns aimed at attracting international investors, including sovereign wealth funds, endowments and family offices. Market participants say interest from investors in the Middle East, Europe and Southeast Asia has improved over the past year as confidence in China’s technology sector recovers.
Private equity firms including Boyu Capital, Hillhouse Investment and Primavera Capital have also reportedly been active in the fundraising market in recent months.
Investor sentiment has been buoyed in part by the emergence of high-profile Chinese AI companies such as DeepSeek, which has helped revive optimism around China’s ability to compete globally in next-generation technologies.
Despite the improving backdrop, fundraising levels remain below the peaks seen prior to Beijing’s regulatory crackdown on the technology sector several years ago. In addition, some US institutional investors have reduced exposure to China amid heightened political scrutiny surrounding investments linked to sectors including semiconductors and AI.
At the same time, stronger public equity markets in Hong Kong have offered Chinese companies alternative sources of capital, reducing reliance on private fundraising.
