Photo credit: Shutterstock
HongShan, the Chinese unit of Sequoia Capital, is setting up a base in Singapore to scout for opportunities in Southeast Asia, the Financial Times reported, citing multiple sources briefed on the matter.
The move could put HongShan in competition with Peak XV Partners, another Sequoia unit that covers India and Southeast Asia.
Sequoia Capital recently announced a spinoff by 2024, largely due to “growing market confusion” and “portfolio conflicts.”
Analysts have previously said the split would help all three units – HongShan, Peak XV Partners, and Sequoia Capital for the US and Europe markets – be more autonomous and reduce friction from growing US-China tensions.
The report also suggested that HongShan could connect with Chinese founders looking to set up businesses in the city-state and rebrand into Singapore companies.
“We have a very strong and collaborative relationship with the HongShan team and deep friendships with many of the partners,” Peak XV Partners said in a statement to Tech in Asia. “We welcome the opportunity to collaborate with them in the years ahead. We believe the opportunities for collaboration are far greater than the scope for competition.”
A Financial Times report in 2022 said that at least 500 Chinese firms have moved their bases or registered in the Southeast Asian country over the past year to avoid geopolitical risks, including ultra-fast fashion firm Shein and electric automaker Nio.
Update (July 10, 3:12 p.m. SGT): This article was updated to include a statement from Peak XV Partners.
Editing by Thu Huong Le and Eileen C. Ang
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
