Northern Light closes second fund on $350m

NEA- and Greylock-backed Northern Light Venture Capital has held a final close on $350 million for its second fund, less than two years after closing its $125 million debut vehicle.

Northern Light Venture Capital, a Beijing-based firm, has held a final close on $350 million (€237 million) for its second fund, having raised more than a third of the fund in the last month.

The fund, which held a first close on $236 million in early December, will target early stage companies that seek to leverage opportunities in the China market, or target global opportunities from a base in China.

Northern Light raised $120 million for its inaugural fund, which closed in the summer of 2006. The first fund invested in around 20 companies in the consumer and technology sectors, including two fabless semiconductor companies, online dating service Baihe.com and hotel chain Hanting Hotels. The new fund will target an expanded range of industries, including media and telecommunications.

Northern Light was founded in 2005 by Feng Deng and Yan Ke, two Chinese executives who earlier co-founded US tech company NetScreen Technologies. US venture firms Greylock Partners and New Enterprise Associates are special limited partners in both of Northern Light’s funds, and co-invest in deals as well. The two firms also provide advisory and operational support.

Fund II’s other limited partners include government funds, endowments and non-profit foundations from the US, Europe and Asia.

The firm has offices in Shanghai and Menlo Park in addition to its headquarters in Beijing.