Northern Light closes $404m Fund III

The China-focused venture firm will continue to make investments in the country's IT, cleantech and consumer services sectors, but will now also target healthcare for the first time.

China-focused venture capital firm Northern Light Capital Venture (NLVC) has closed its third US-dollar denominated fund on $404 million, a spokeswoman for the firm told PE Asia

The fund's LPs include fellow venture firms Greylock Partners and New Enterprise Associates.

“NEA has supported Northern Light from its founding, and we're very pleased to continue to do so. We believe that the opportunity to apply the lessons of Silicon Valley to China is very compelling,” Scott Sandell, general partner at New Enterprise Associates, said in a statement.

Northern Light Venture Fund III succeeds the 2007-vintage Fund II, which closed on $353 million.

Fund III will continue its predecessor’s strategy in focusing on information technology, consumer services and clean technology, but will now also seek opportunities in the healthcare sector. 

“We see exceptional opportunities in the domestic market driven by mega-trends such as urbanisation and the evolution of middle class consumption patterns,” Deng Feng, founding managing director of NLVC, said in the statement.

NLVC was founded in 2005 and is headquartered in Hong Kong, with offices in Beijing, Shanghai, Suzhou, and Menlo Park.

In addition to its three US dollar-denominated funds, the firm also manages two RMB-denominated joint venture funds – the RMB100 million Northern Light ZGC JV RMB Fund and the RMB150 million Northern Light Suzhou JV RMB Fund. Both funds closed in 2009.

Some of the firms’ previous investments include Cathay Bio, Green Bio and Halation Photonics, which operate in the Cleantech space; Aerohive Networks and Hillstone Networks, which are in the communications systems space; and Derbysoft and ThunderSoft, which are companies in the software space.