BAI Capital raises $700m to support Chinese firms

BAI Capital, the VC arm of German conglomerate Bertelsmann, has raised US$700 million to invest in Chinese companies that are working towards structural transformation in the country and looking to expand internationally.

The BAI Capital team / Photo credit: BAI Capital

Sovereign wealth funds and insurance firms as well as Bertelsmann Group – BAI Capital’s parent company – joined the latest fundraise.

The China-focused VC said it plans to invest in a wide range of sectors such as retail, fintech, Web3, and autonomous vehicles. While it is also eyeing offices in Singapore and Berlin, it did not give a timeframe for the expansion.

Previously known as Bertelsmann Asia Investments, BAI Capital was founded in 2008 by Long Yu. Since then, it has invested in 200 startups: 40 have become unicorns while and 20 have gone public.

Some well-known names backed by BAI Capital include electric-vehicle maker Nio and livestreaming platform Bigo. The VC firm also bankrolled Mobike, a bike-sharing startup that was acquired by Chinese tech giant Meituan in 2018.

In a statement, Yu said that BAI Capital “will further open up the successful path of Chinese enterprises in international competition and cooperation, and serve entrepreneurs with a global mind.”

BAI Capital’s fresh raise comes amid the so-called “funding winter” in the global startup space. This slowdown has affected the fundraising plans of several firms and even compelled some to take preemptive measures such as layoffs to cut down on expenses. Countries like China are also grappling with an economic slump.

But the trend appears to be changing, with several large-ticket fundraises taking place in recent weeks. For instance, Sequoia Capital China has secured US$7 billion for funds aimed at supporting local startups, TechCrunch reported. Qiming Ventures landed US$3.2 billion, while IDG Capital banked US$900 million.

See also: Tracking layoffs across Asia’s startup ecosystem (Updated)