Xiang He Capital, the China TMT focused venture capital firm founded by former Baidu executives Mr. Hesong Tang and Ms. Maggie Yang, has recently closed its second USD-denominated venture fund at the increased hard cap of $425 million.
The Fund was well oversubscribed, exceeding the $350 million target and with demand beyond the hard cap. LP support came from existing and new investors from across the United States, Europe, the Middle East and Asia-Pacific, representing global consultants, leading university endowments, foundations, family offices, pensions, and fund-of-funds.
Continuing its strategy from Fund I, Xiang He invests in high-growth internet and tech-enabled businesses in China, identifying and investing at an inflection point where companies have operational traction but have not yet scaled to the growth stage of investment. Xiang He’s comprehensive and analytical approach and strategic vision are highly recognized by entrepreneurs and have been instrumental in winning competitive deals in China’s VC space. The Fund has closed four deals to date, in sectors spanning e-commerce, online education, enterprise services and AI.
“I am delighted at the strong support we have received from existing and new institutional investors around the world, reflecting our collaborative and strategic approach to partnering with management teams and investors, and the longevity and strength of our team that has worked together since our time at Baidu. We have been able to source some interesting early investments in the fund and believe the coming cycle offers exciting opportunities for China’s TMT market and a more normalized valuation environment for this vintage,” Hesong said.
Founded in 2016 by Mr. Hesong Tang and Ms. Maggie Yang, Xiang He Capital is a venture capital firm targeting early and growth stage investments in the TMT industry in China with a particular focus on internet, enterprise services, and AI/Big Data. Xiang He Capital currently manages two USD funds and one RMB fund, with over $1 billion under management.
Before starting Xiang He, Mr. Tang was Baidu’s VP of Corporate Development, overseeing strategic investments and M&A, and Ms. Yang was Baidu’s Executive Director of Corporate Development. Together, they led a series of landmark deals at Baidu, such as iQiyi, Qunar, PPS, 91 Wireless and Kuaishou, and, more latterly, at Xiang He Capital have invested in companies such as iQiyi, Yunmanman (currently known as Manbang), Huolala, Zuoyebang and VIPKID, which have all had a significant impact on China’s TMT industry. Mr. Tang and Ms. Yang are supported by a senior investment team with backgrounds in corporate development at Baidu, as well as other leading internet companies and VC funds. http://www.xianghecap.com/weben/index.php
Lazard acted as financial advisor and exclusive placement agent.