Top China VC Seeks U.S. Investors for $1.5 Billion Fund, Bucking Political Headwinds

Matrix Partners China, one of the most prolific early-stage venture capitalists in China, is looking to raise at least $1.5 billion, mainly from U.S. institutional investors, for its biggest-ever fund, according to people with knowledge of the matter. If successful, it would become one of the largest pools of money dedicated to young startups based in China.

The Matrix China fundraising and a similar effort by another top China VC firm, Qiming Venture Partners, will be a barometer of how American investors feel about the potential business impact of political and trade tensions between the U.S. and China. Some U.S. investors have privately expressed concerns about new regulatory barriers erected by both countries over cross-border investments, as well as restrictions on the ability of Chinese companies that raise capital in U.S. dollars to go public in New York. And Beijing’s recent regulatory crackdown on its tech sector hurt some of Matrix China’s high-profile investments, such as ride-hailing app Didi Global, which plans to delist its shares from the New York Stock Exchange, and online tutoring startup Yuanfudao.