Travel agency China CYTS Tours Holding, IDG Capital, the local VC affiliate of media company International Data Group, and Sequoia Capital China have partnered to launch an investment fund, China Money Network reported yesterday.
The CYTS Hongqi Fund will identify opportunities in the tourism sector. The size of the fund has not been disclosed and it is known whether the three investors are seeking additional commitments from outside parties.
IDG, China CYTS Tours and Sequoia have incorporated a fund management company to manage the new vehicle. All four of these will appoint a director to join the management company’s board.
Wang Cen, partner at Sequoia, said: “With the change of population structure and expansion of the middle class, Chinese consumers are becoming more demanding for the quality of their food and beverage, entertainment, culture, sports and tourism.
“With the tourism industry’s continued upgrade to meet new demand, innovative travel startups will be founded and this fund attempts to benefit from this trend by combining a tourism industry leader with venture capital experts.”