Is This the Best Time to Invest in China? Its VC Funds Hope So

It’s been pretty bleak for venture capitalists in China over the last two years. U.S. pensions and endowments halted investments. Existing investors demanded cash distributions. Fundraising plunged. But lately China’s venture capitalists have decided they can’t wait until the downturn passes to hit the fundraising circuit.

Several China-based fund managers are raising new U.S. dollar-denominated funds, according to a limited partner and a fundraising adviser who have spoken with these fund managers.

Lanchi Ventures, formerly the China arm of Menlo Park, Calif.-based BlueRun Ventures, is in talks to raise $300 million in an early-stage fund, the two people said. NIO Capital, the venture arm of China’s electric-vehicle star NIO, has begun to raise $400 million. Lilly Asia Ventures, the healthcare-focused investment firm that grew out of pharmaceutical giant Eli Lilly, is targeting $800 million in its latest fund. And Source Code Capital, best known for its early bet on ByteDance, is looking to raise $300 million for a new venture fund, they said.