US-based venture capital firm DCM Ventures launched its second fund dedicated to companies developing technology for the Android mobile operating system yesterday with $100m of capital and several strategic limited partners.
The A-Fund II’s LPs include diversified internet services companies Tencent, Naver and Baidu, digital media company Gree, mobile device semiconductor maker Qualcomm, and telecommunications and internet firm SoftBank.
DCM will use A-Fund II to make investments in companies developing apps and online services focused on the Android ecosystem. It will concentrate on US and Asia-based companies but will consider early-stage investments in mobile companies located in other markets.
Tencent, Naver, and Gree were previously LPs in DCM’s $100m first A-Fund, which was launched in 2011. Telecoms firm KDDI and internet company GMO were also among the backers of the first fund, which was initiated as an Asia-focused vehicle before expanding to also fund US-based startups.
Jason Krikorian, general partner at DCM, said yesterday: “We consider ourselves fortunate to work so closely with some of the largest and most influential global technology companies.
“We believe we’re the only Silicon Valley firm with such deep ties to the largest Asian strategics. These relationships are key in our work helping early-stage startups navigate global markets, and we are thrilled that the SoftBank Group and the other new investors have joined us for A-Fund II.”
Companies backed by the original A-Fund include mobile communication app developer Life360, vehicle rental service Yongche, online message board Yik Yak and dating app Coffee Meets Bagel.
Although two of its portfolio companies, mobile gaming studio Loki and file management technology provider Kanbox, were subsequently acquired, the fund’s biggest success is mobile communication app provider Kakao.
DCM invested in Kakao as part of a $20m round in 2011 and, after merging with internet portal Daum in October 2014, the joint DaumKakao firm now has a market cap of almost KRW 7.8 trillion ($6.7bn).
– Image courtesy of DCM Ventures