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Lightspeed announces new $560 million fund for China

Global investor Lightspeed is starting 2019 with its largest-ever fund for China, where it has backed a number of new internet challengers.The firm announcedthis week that its fourth China fund has closed with a total capital commitment of$560 million.
The firm had a massive 2018, with no fewer than five of its portfolio holding IPOs including two of Chinas up-and-coming startups that are challenging the countrys internet establishment they are Meituan, the super app firm that specializes in deliveries, andPinduoduo, a group e-commerce company that is threatening Alibabas dominance.
Based on those successes, it is perhaps not a surprise that Lightspeed has pulled in a record new fund.TechCrunch previously reported that the new fund was aimed at $360 million based on filings, but it added more capital to give more options.
Lightspeed said it has$360 million for early-stage deals aimed at Series A and Series B stages, with an additional $200 million set aside for growth investments. The new fund dwarfs Lightspeeds previous vehicles in China the firms previous two China funds each closed at $260 million while it raised $168 million for its debut fund in the country in 2013.
Lightspeed Venture Partners is a well-known investor that is anchored inSilicon Valley with global funds in India, Israeli and of course China. Together, those funds manage around $6 billion in capital, according to the firm.
Led by partners Chris Schaepe, Herry Han and James Mi, the China operation has backed a range of unicorns, including the aforementioned Meituan,which raised over $4 billion via a Hong Kong IPO last year,and Pinduoduo,which raised $1.6 billion via a U.S. listing in 2018. Other Lightspeed China IPOs from last year werePPDai,Rong360 andInnoLight while the firm also counts $9 billion-valuedFull Truck Alliance, real estate platform Fangdd and Airbnb-likeTujia, both of which arevalued in the billions, among the more mature bets in its portfolio.
We believe there are plenty of new opportunities in China consumer Internet given the depth of Chinas mobile payment and social networks. Innovation and entrepreneurship in the next decade will bring more China-based startups to the world stage. This will be Chinas first decade of truly global innovation. Chinese entrepreneurs are now developing business plans with global expansion in mind from day one, said Han, one of the firms founding partners, in a statement.
Last year, Lightspeed Venture Partners the U.S. entity filed to raise a record$1.8 billionin new capital commitments. In December, it addedfive new partnersto its consumer and enterprise investment teams, including Slacks former head of growth and Twitters formervicepresident of globalbusiness development.
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