China-based venture capital firm Sinovation Ventures has raised about RMB4.5bn ($675m) for two funds from limited partners including manufacturing services provider Foxconn, the Wall Street Journal reported on Sunday.
Foxconn is the anchor investor in a $300m dollar-denominated fund, which Sinovation closed alongside a $375m renminbi-denominated fund. It plans to target artificial intelligence, enterprise software and entertainment production companies with both funds.
Sinovation is the VC firm formerly known as Innovation Works. Founded in 2009, it raised $108m for its first Chinese currency fund and $180m for its first dollar fund before closing a $275m dollar-denominated fund alongside less than $100m in renminbi in 2012.
Kai-Fu Lee, co-founder of Sinovation, told Global Corporate Venturing by email said: “We have always worked closely with Foxconn.”
Image and display technology provider Jiangsu Protruly Technology Group plans to provide up to $6m in capital for Sinovation, Reuters reported last week, though it did not disclose which fund that money will be directed towards.
Lee said in a statement: “We still see many good ideas and trends to invest in. High-quality startups won’t be cheap and will require a lot of investment as they grow.”