The German company Bertelsmann’s venture capital arm, BAI Capital, has raised $700 million in the US to invest in Chinese businesses that are attempting to change the country’s fundamental makeup and go global.
The most recent fundraising effort included participation from insurance companies, sovereign wealth funds, and Bertelsmann Group, the parent company of BAI Capital.
The VC, emphasising China, stated that it intends to invest in various industries, including retail, finance, Web3, and autonomous cars. It did not provide a timeline for the growth, despite its interest in operations in Singapore and Berlin.
BAI Capital, formerly Bertelsmann Asia Investments, was established in 2008 by Long Yu. Since then, it has invested in 200 firms, of which 20 have gone public, and 40 have become unicorns.
The live streaming service Bigo and the electric car manufacturer Nio are some well-known brands that BAI Capital has funded. In 2018, the Chinese digital juggernaut Meituan purchased the bike-sharing company Mobike, financed by a venture capital firm.
BAI Capital “will further open up the successful route of Chinese firms in worldwide competition and collaboration, and serve entrepreneurs with a global perspective,” Yu stated in a statement.
The recent financing by BAI Capital comes during the so-called “funding winter” in the international startup community. This delay has impacted many businesses’ fundraising efforts; some have even been forced to take preventative action like layoffs to save costs. China and other nations are battling an economic downturn as well.
However, given the recent spate of high-profile money raisers, the tendency seems to shift. For instance, according to TechCrunch, Sequoia Capital China has received US $7 billion for funding intended to promote Chinese businesses. IDG Capital received US $900 million, while Qiming Ventures received US $3.2 billion.
