Xiang He Capital, the China TMT focused venture capital firm founded by former Baidu executives Hesong Tang and Maggie Yang, has recently closed its second USD-denominated venture fund at the increased hard cap of USD425 million.
The Fund was well oversubscribed, exceeding the USD350 million target and with demand beyond the hard cap. LP support came from existing and new investors from across the United States, Europe, the Middle East and Asia-Pacific, representing global consultants, leading university endowments, foundations, family offices, pensions, and fund-of-funds.
Continuing its strategy from Fund I, Xiang He invests in high-growth internet and tech-enabled businesses in China, identifying and investing at an inflection point where companies have operational traction but have not yet scaled to the growth stage of investment. Xiang He’s comprehensive and analytical approach and strategic vision are highly recognised by entrepreneurs and have been instrumental in winning competitive deals in China’s VC space. The Fund has closed four deals to date, in sectors spanning e-commerce, online education, enterprise services and AI.
“I am delighted at the strong support we have received from existing and new institutional investors around the world, reflecting our collaborative and strategic approach to partnering with management teams and investors, and the longevity and strength of our team that has worked together since our time at Baidu. We have been able to source some interesting early investments in the fund and believe the coming cycle offers exciting opportunities for China’s TMT market and a more normalised valuation environment for this vintage,” says Hesong.
