GSR Ventures, an affiliate of Silicon Valley-based venture capital firm Mayfield, has closed its third fund on $383 million.
Almost twice the size of its predecessor, the fund had “a much lower target of around $300 million”, said Allen Zhu, a partner at GSR Ventures. It started fundraising in May 2008 and closed in July 2008, he added. No placement agent was used.
“All existing investors from the second fund re-upped for the third fund, with additional investors mostly from the US and Asia,” said Zhu. The firm’s last fund, GSR Ventures II, closed on $200 million in 2007, less than a year after holding a final close on its $72 million debut fund.
GSR Ventures III will invest between $5 million and $10 million in technology companies with operations in China. It targets IT sectors such as internet, wireless and semiconductors, and is “expanding into new sectors like green technology”, Sonny Wu, managing director of GSR Ventures, said in a statement.
For its first deal, the fund invested an undisclosed sum in digital studio company iLemon Group for a minority position.
Founded last year, the Shanghai-based gaming company uses web browser based technology to develop 3D virtual worlds.
The investment, the first of many in GSR Ventures III’s deal pipeline, will help the company further grow in China, said Zhu.
GRS Ventures has offices in Beijing and Silicon Valley, and currently has approximately $700 million under management.