Legend Capital backs Chinese IT company

The China-focused venture capital firm made the investment in Beijing-based Dianji Technology from the $350m Legend Capital Fund IV.

Legend Capital has invested an undisclosed sum into Dianji Technology, an instant messaging platform provider.

Established in 2001, Dianji Technology develops corporate collaborative software services as well as internet applications and instant messaging platforms, such as Lava-Lava.

The investment was made out of Legend Capital IV, which closed on $350 million in April 2008. “Since then, between 5 percent and 10 percent of the fund’s total commitments have been called,” a firm spokeswoman said in an interview.

The fund invests in early and growth stage companies in information and technology, consumer-related, cleantech and healthcare sectors. It invests between $3 million and $6 million in early stage deals and no more than $15 million in growth stage deals, she added.

Legend Capital III, the fund’s predecessor, closed on $170 million in April 2006 and is fully invested.

Legend Capital is a sister company of private equity firm Hony Capital, which focuses on buyouts in China. Both are member companies of Legend Holdings, a state-backed conglomerate, which is also the largest shareholder in computer manufacturer Lenovo.