Top Chinese venture fund dismisses talk of quitting ‘dead’ market, says focus now on AI
- Capital Today said it has actively sought deals in the field of artificial intelligence, including investments in start-up Moonshot AI
A top Chinese venture capital (VC) firm, which has backed some of the country’s most successful technology start-ups, has dismissed talk that it has decided to exit the primary market, at a time when there is heated debate over whether the country’s once-vibrant venture funding industry is “dead”.
Capital Today, which profited handsomely from its early investments in Chinese e-commerce platform JD.com, food delivery giant Meituan, and the country’s No 2 video gaming company NetEase, issued a statement to Chinese media outlets on Wednesday refuting market rumours that it has decided to pull back on venture capital investment.
The company said it has been actively seeking deals in the fields of artificial intelligence (AI), among others. Capital Today said it invested in an early-stage start-up called Stand AI in May, and increased its existing investment in Moonshot AI in July.
The denial comes as China’s VC market, once known for actively channelling capital into promising start-ups, has dried up, replaced by government funds chasing “hard tech” deals. Wang Ran, CEC Capital founding partner and chief executive, said in a speech last month that China’s primary market for venture investors is “dead” as deals have dried up.
Kathy Xu Xin, the founder of Capital Today, has been called “China’s venture capital queen” for her successful deals in the domestic internet sector.
