The venture capital market appears to be recovering. Beijing-based Bluerun Ventures said on Friday that it had completed its Rmb3.5 billion ($498 million) fundraising to deploy in early-stage investments.
Bluerun said that the capital will be invested in startups between pre-A to Series A with an average duration of 10 years. New technologies such as IoT, autonomous driving, medical services and smart manufacturing will be the focus of its investment.
The amount of private capital raised increased in October. According to data from the Asset Management Association of China, the total volume managed by private equity in China has risen 2.23% to Rmb299 billion since September.
The number of private equity funds has also increased by 1.17% over the same period. This has cheered people up as both figures have been flat since April.
Bluerun has a good track record. Founded in China in 2005, it has already exited from 20 companies in its portfolio either via IPO or acquisition, including US-listed 58.com, Qudian and Mogujie. It still holds shares in some of the stars of China's internet sector such as Softbank-backed Guazi.com (a second-hand car retail platform), Tencent-backed Meishubao (online art teaching) and Shuidi Huzhu (online health insurance platform).
The company said in a press release that more than 80% of its investees will have continuous funding, and in total its portfolio companies will receive 10 times more capital in their next round of funding. Over the past 14 years, Bluerun has an average IRR of more than 30%.
Existing investors including an international insurance company, a sovereign wealth fund, a pension fund and a family office all participated in the fundraising.
Bluerun is keeping its eys on opportunities that target changes in China’s demographics. As the population ages and levels of education rise, Bluerun wants to focus on healthcare and new modes of consumption.
For recruitment, the venture capital firm also said that it wants target to those who have returned from overseas as a fallout of the China-US trade war.