Sequoia Capital sets up hedge fund for China tech investment

hedge fundSilicon Valley-based venture capital firm, Sequoia Capital, is reportedly set to establish three new hedge funds for its China arm designed to invest in Chinese tech companies. According to the Wall Street Journal, Sequoia China’s new unit will be led by founder and managing partner, Neil Shen, and will have at least US$300 million in initial capital. Three executives from rival firm, Hillhouse Capital Group, have also been recruited to run the new hedge fund. The move continues to expand Sequoia China’s investment mandate, from the initial focus on early-stage venture capital deals to companies at a later stage of development, including some that may have already gone public. In June, Sequoia China applied to become a Qualified Foreign Institutional Investor, making it eligible to invest in the growing onshore A-Shares market in China. The firm also submitted filings to the US Securities and Exchange Commission in late August for three new funds focused on Chinese early stage, seed and growth stage companies. Sequoia China, founded in 2005 by Chen, has made billions from its early investments in successful tech companies. It was an early investor in Bytedance, the owner of social media app TikTok. © 2020 funds global asia

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