Dollar funds driving China VC charge

After years of stagnancy, a new round of fundraising among US dollar-denominated funds is taking shape in China, aiming to tap into the structural opportunities generated by emerging technologies and consumption recovery, said experts.

At least six of China's well-established venture capital firms are raising more than $2 billion of new US dollar-denominated funds, through which overseas investors can tap into Chinese enterprises specializing in new technologies and discretionary consumption, Bloomberg reported on Friday.

LightSpeed China Partners, known for its investment in local commerce platform Meituan and online discounter PDD Holdings, is reportedly raising at least $400 million for a technology-focused fund. Monolith Management, which backs MoonShot AI, is looking to start a second fund of at least $265 million. Other prominent VCs part of this fundraising wave include BA Capital, Ince Capital and Source Code Capital. Artificial intelligence and consumption are the two major sectors that the new financing will be directed toward, Bloomberg said.