Chinese early-stage investment firm 01VC has reported the first close of a 500 million yuan (US$69 million) RMB-denominated fund.

The fund has secured backing from state-owned capital, market-oriented fund-of-funds, and listed companies. It will focus on early- to growth-stage investments in sectors such as smart manufacturing and cross-border expansion.

Individual investments will range from 5 million yuan to 50 million yuan (approximately US$700,000 to US$7 million).

01VC aims to foster advancements in robotics, embodied AI, and other technologies to improve China’s industrial and supply chain digitalization. The firm also plans to assist Chinese companies with mature supply chains in expanding internationally, particularly in ecommerce and service trade.

Founded in 2015, 01VC has managed five funds and its portfolio includes companies such as logistics platform Lalamove, robotics firms Hai Robotics and Task Robot, and fintech companies XTransfer and Xendit.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ RMB funds represent a critical strategy shift in China’s venture ecosystem

01VC’s new RMB fund reflects a significant evolution in China’s venture capital landscape that began over a decade ago with the emergence of domestic currency funds.

By 2009, the creation of ChiNext (China’s NASDAQ equivalent) provided critical liquidity options for startups backed by Renminbi funds, which offered more flexibility than their dollar-based counterparts 1.

This currency shift represents growing financial self-sufficiency amid US-China tensions, with 01VC’s Lu Yu explicitly acknowledging the challenges of transitioning from a USD-driven model to local fundraising.

The move aligns with a broader national trend toward domestic capital circulation, with state-backed investors and local government funds becoming increasingly important limited partners in China’s tech ecosystem.

For firms like 01VC, establishing RMB funds provides broader access to China’s massive domestic institutional capital while potentially reducing regulatory hurdles that can delay foreign currency investments.

2️⃣ VC investment strategies increasingly align with China’s “dual circulation” policy

01VC’s investment focus on smart manufacturing and cross-border expansion aligns with China’s national “dual circulation” strategy announced by President Xi Jinping in May 2020 as a response to US trade tensions and pandemic disruptions 2.

This policy framework prioritizes domestic innovation and consumption (“internal circulation”) while maintaining strategic international engagement (“external circulation”)—themes 01VC highlights in its fund announcement.

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