Lightspeed raises $260m China fund

Hong Kong-based Lightspeed China Partners has closed its second fund on $260 million.      

Hong Kong-based Lightspeed China Partners has closed its China Partners II fund on the $260 million hard cap. The target was $220 million, and the vehicle was oversubscribed.

China Partners II, like its predecessor fund China Partners I, will target early-stage, China based businesses in the technology, mobile and enterprise. China Partners I closed last year on $168 million.

The new fund is targeting approximately 30 companies with initial investment sizes ranging from $500,000 to $7 million in seed and Series A rounds, according to a statement.

“We continue to be excited about early-stage technology investment opportunities in China, said Ron Cao, managing director of Lightspeed China Partners in a statement. “Chinese businesses and consumers are embracing technology in an unprecedented way.”

Cao and fellow managing director James Mi will oversee the fund.  Both have extensive venture capital experience and have worked on deals in the technology sector.

Investments from the first fund included online furniture retailer Meilele and online advisory services provider Rong360.  Lightspeed was the earliest investor in Tuija.com, a website that helps people rent out lodging that now has over 80,000 properties listed, mostly in China. Tuija.com secured $100 million from Lightspeed Partners, GGV Capital, and Qiming Venture Partners in the Series A round.