Hong Kong technology venture capital (VC) firm Mindworks Capital will invest in startups across the Greater Bay Area and Asia, countering a prolonged downturn in private investment centered on China amid geopolitical headwinds. finalized a new US dollar fund for the
MindWorks said on Tuesday it closed a new US$220 million fund with investors including sovereign wealth funds, university endowments, asset managers, family offices and “many prominent Asian new economy entrepreneurs”. Announced.
The new fund, the firm’s fourth, will bring total assets under management to US$1.4 billion.
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Despite some China-based venture capital firms finding it difficult to attract US dollars, the firm’s “cross-border, cross-region” investment strategy across Greater China and Southeast Asia This is resonating with multiple global investors seeking to deploy capital to the company,” Joe Chan, managing partner at MindWorks, said in a company statement.
Mindworks Capital Managing Partner Joe Chan in this Jan. 17, 2018 file photo. Photo: Xiaomei Chen alt=Joe Chan, Mindworks Capital Managing Partner, in this file photo dated January 17, 2018. Photo: Xiaomei Chen>
About 70 percent of MindWorks’ new fund’s investors are based in Asia, while about 30 percent are from Europe, David Chang, a founding partner at MindWorks Capital, told the Post on Tuesday. .
Greater China-based venture capital firms investing in the region have struggled to raise dollars in recent years amid a slow economic recovery and rising geopolitical tensions between China and the United States.
There were no US dollar inflows to China-based VCs and private equity funds in the first half of 2024, according to a note from Gabekal Research published in July, citing data from market research firm Preqin.
Preqin also said in July that private capital funding, mainly from China, fell to an all-time low of US$3.4 billion in the second quarter of this year. This is less than one-tenth of the average quarterly figure of US$45 billion from 2019 to 2021.
Chan said the new MindWorks Fund will support technology startups in areas such as cross-border logistics, cross-border finance and smart manufacturing, and those looking to leverage artificial intelligence to transform these businesses. The company plans to invest in companies that
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The company is one of a series of funds selected by the Hong Kong government-run Innovation and Technology Venture Fund to co-invest in local startups since 2018.
MindWorks has previously supported companies such as Hong Kong-based logistics operator Lalamove, Shanghai-based cross-border payment and risk management service provider XTransfer, and Hong Kong-based financing startup Quital. Ta.
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