Venture debt firm InnoVen Capital has announced the first close of its USD 50 million new China Fund, the firm announced on Monday. The InnoVen China Fund will be managed by Yingxue Cao, who has been leading InnoVen’s China operations since 2017.
InnoVen China has completed 100 deals and backed more than 70 companies since launch, with more than USD 300 million cumulative disbursements. The firm has invested in companies such as autonomous vehicle software provider Momenta, B2B artificial intelligence firm Mininglamp Technology, and mobile device charging service provider Energy Monster.
This is the third fund that InnoVen Capital, a joint venture between Seviora, a wholly-owned subsidiary of Temasek, and United Overseas Bank, has launched this year. In September, it launched a USD 100 million India fund, followed by a USD 50 million Southeast Asia fund a month later.
Venture debt is an additional avenue of capital for companies that still rely on venture capital financing. It enables high-growth companies to extend their cash runway while minimizing equity dilution. “I am glad to witness how venture debt has developed in China, from being relatively unknown four years ago to becoming an integral part of the financing for startups today,” said Cao in a statement.
“With the new China Fund, we can offer flexible and efficient financing solutions to more companies across the consumer, enterprise service, and technology sectors, and provide follow-on financing to them as they scale their business. We hope this will add to the growth and vibrancy of the entire ecosystem,” Cao added.
Established in 2015, InnoVen Capital has disbursed over USD 900 million for tech startups in India, China, and Southeast Asia. The firm has backed about 180 companies in India, including Byju’s, Swiggy, and Oyo Hotels & Homes. Meanwhile, in Southeast Asia, the firm has invested in over 50 startups, including Ruangguru, Carsome, Funding Societies, and Akulaku.