China’s Qiming Venture Partners earmarks US$648 million for innovative Chinese start-ups ranging from IT to health care

PUBLISHED : Tuesday, 02 February, 2016, 7:03pm
UPDATED : Tuesday, 02 February, 2016, 7:03pm

Mainland Chinese firm Qiming Venture Partners, an early investor in high-flying technology start-up Xiaomi, has closed its fifth US dollar venture capital fund with commitments totalling US$648 million, earmarked for innovative domestic entrepreneurs in the information technology, internet, consumer, health care and so-called clean tech sectors.

“Qiming strives to be the investor of choice for top entrepreneurs in China,” Qiming said on Tuesday.

The company, which started operations in 2006, said its portfolio includes over 160 investments distributed among its targeted sectors.

Assets under management have reached US$2.5 billion through five US dollar funds and three yuan-backed funds.

“Today’s venture market in China presents more opportunities and challenges than ever,” said Ed Grefenstette, the president at US-based trust and investor The Dietrich Foundation.

“Qiming enjoys that rare combination of extraordinary talent, experience and discipline.”

The firm invests in early- and expansion -stage deals, with more than 50 per cent of its transactions involving early-stage companies.

According to a recent report from the McKinsey Global Institute, a new wave of entrepreneurs has emerged in mainland China as access to early financing rounds has improved dramatically.

“Early-stage venture funds grew by a factor of 14 between 2009 and 2014, rising to about US$6 billion,” the institute said.

“Almost 70 per cent of early-stage investment was in internet and information technology-related businesses.”

It said e-commerce giant Alibaba Group, online search provider Baidu and internet powerhouse Tencent Holdings have invested more than US$11 billion in about 100 ventures, “looking for both investment returns and to fill strategic needs of their businesses”.

Prominent investments made by Qiming include current Chinese smartphone market leader

Xiaomi, popular video-sharing, animation and comics site Bilibili, insulin supplier Gan & Lee Pharmaceuticals, female social e-commerce community Mogujie, and Dianping, which recently merged with Meituan to form the mainland’s biggest online-to-offline daily deals provider.

Nisa Leung, Qiming’s managing partner responsible for health care, said the company has invested more than US$600 million in the health care sector over the past seven years.

“Qiming currently has investments in nearly 50 companies in this sector, spanning biopharmaceuticals, medical devices, diagnostics, health care services and related technologies,” Leung said.

More than 30 Qiming-invested companies have also been listed on the New York, Nasdaq, Hong Kong, Shanghai and Shenzhen stock exchanges, or achieved exit through mergers and acquisitions.