Venture Capital Fund Investment in China

Filed in archive Venture Capital on December 27, 2011

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For a venture capital fund like Accel, China represents the investment opportunity of the century. Accel is just one of the venture capital firms that are pouring money into every possible area of innovation in the country, stretching beyond technology into signage companies, fast food chains and even milk powder companies. Accel, which topped Forbe's list of venture capital firms, has recently closed two new funds in China in less than eight weeks, totaling $1.3 billion with its partner in China, the International Data Group (IDG).

Another VC fund, Matrix Partners, has also just closed a $350 million fund in China as well, which brings its total AUM in the country to $650 million. Sequoia is another VC fund with a major Chinese presence worth over a billion. It is no surprise given the intense investor interest that of the 72 IPOs to hit the market in 2010, 24 were Chinese companies.