Israeli tech firm Infinity Equity has reached $270 million (€181 million) for its second, China-focussed fund, with a new $50 million commitment from the China Development Bank and IDB Group. With the new commitment, Infinity has raised the fund’s target from $250 million to $350 million. The firm hopes to hold a final close by July 2008.
Infinity held a first close on $155 million last July. The fund’s initial target was $150 million when the firm went out to market in September 2006, but after the fund’s first close the target was raised to $250 million.
The fund invests in late-stage Israeli technology companies with parallel investments in Chinese businesses that license and develop Israeli technologies.
Infinity raised its first China fund in 2004 in conjunction with Suzhou Ventures Group, a state-backed venture capital firm. That fund was the first onshore limited partnership approved by the state.
The firm has raised a series of funds for Israeli technology companies since it launched in 1993, but more recently has decided to focus its activities on China, making investments with local partners.
Infinity has offices in Tel-Aviv, China, Hong Kong, New York and London.