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Sequoia Capital China opens start-up accelerator despite tech crackdown, slowing economy

  • The venture capital firm plans to provide US$1 million in funding to each successful graduate of its inaugural six-week accelerator programme
  • The move comes as China’s tech sector grapples with the fallout from a regulatory crackdown, a weakening economy and geopolitical headwinds

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A delivery man walks near a Chinese flag in Beijing on Monday. Photo: AP Photo

The China arm of Sequoia Capital, one of the country’s top technology industry financiers, is looking to invest in up to 30 early-stage start-ups, as the venture capital firm continues to bet on the Chinese tech sector despite challenges.

The inaugural six-week accelerator programme, named Yuè, plans to provide US$1 million in funding to each admitted founder that “successfully graduates”, the company said in a statement on Monday.

Classes will be taught by the firm’s partners in China, while founding and managing partner Neil Shen, one of China’s top technology industry deal-makers, will also attend sharing sessions at the beginning of each programme, according to the firm.

Sequoia Capital China’s move comes as the country’s tech entrepreneurs and investors face a tough environment following Beijing’s 18-month regulatory crackdown, exacerbated by a weakening economy and geopolitical headwinds.

Neil Shen, the founding and managing partner of Sequoia Capital China. Photo: Handout
Neil Shen, the founding and managing partner of Sequoia Capital China. Photo: Handout

The stock valuations of China’s biggest internet giants – including Tencent Holdings, Meituan and Alibaba Group Holding, owner of the Post – have collectively lost more than US$1 trillion since early last year.

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