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Innovation Works closes first internet-focused fund of USD180m

Innovation Works, an early-stage high-tech investment firm in China that invests in and coaches young entrepreneurs as well as providing complete services to help these start-ups, has successfully raised USD180 million.

 

The Innovation Works Development Fund (IWDF) is the first US dollar-based fund raised by the firm to be specifically focused on the Chinese Internet. This new fund was over-subscribed, validating Innovation Works’ early successes and reflecting continued global confidence in the future of Chinese Internet companies.

"Innovation Works has incubated and invested in about 34 project companies, and nine of them have successfully obtained sizeable Series A financing from third-party VCs. Our unique ‘incubation + investment’ model has not only produced a pipeline of high-quality projects, but also enabled local early-stage start-up teams to grow quickly with the help of our 360-degree mentoring services, in effect creating the ‘entrepreneurial academy’ for Chinese start-ups," said Kai-Fu Lee, the CEO and Chairman of Innovation Works.

Globally renowned corporations, family funds, and top institutions have participated in the fund. Investors include WI Harper, Silicon Valley Bank, Baillie Gifford, Sequoia Capital, IDG-Accel, Foundation Capital, Mohr Davidow, Chunghwa Telecom, Singapore Telecom, Mediatek, Foxconn, New Oriental, SAP, Bertelsmann, Motorola, Autodesk, pension funds from the US and Canada, investment luminaries including Ron Conway and Yuri Milner, as well as executives and former executives from top Internet companies like Yahoo, Google, YouTube, Facebook, and Amazon.

Yuri Milner, who has invested in Facebook, Zynga, and Groupon, says, "Kai-Fu’s Innovation Works is the top very-early-stage fund in China. We are proud to be an investor, and hope that IW will help to produce in China companies on the scale of Facebook, Zynga, or Groupon."

Ron Conway, a Silicon Valley icon, says: "Over the years, I have helped numerous companies in the United States from their founding. When I saw that Kai-Fu’s Innovation Works has built up a great team planning to do the same in China, I became very excited. I personally invested in Innovation Works, and recommended many of Silicon Valley’s top investors to invest. Innovation Works has already shown excellent early results, and we look forward to their continued success."

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