Qiming Venture Partners Adjusts Strategy: Cuts China Fund Target to $600 Million Amid Investor Caution

Qiming Venture Partners, a notable early investor in giants like Meituan and Xiaomi Corp., has decided to reduce its fundraising target for a new fund focused on Chinese AI and healthcare startups from $800 million to $600 million. This adjustment reflects a broader trend of caution among global investors towards China's tech sector.

Why the Reduction?

The decision came after potential investors showed a preference for smaller investment pools, signaling a more cautious approach to the Chinese tech market. Qiming, led by Duane Kuang, initially aimed for a fund with a hard cap of up to $1 billion, but market dynamics have prompted a reassessment.

The Bigger Picture

This move is part of a larger pattern where US-dollar funds in China are seeking capital amidst economic and regulatory uncertainties. Other firms, including Lightspeed China Partners and Source Code Capital, are also targeting smaller funds, ranging from $150 million to $400 million.

Challenges Ahead

Investors are navigating a complex landscape marked by:

• Economic uncertainty in China
• Escalating US-China tensions
• AI-related investment curbs by Washington

Qiming's Track Record

Qiming has a strong portfolio, including investments in:

• Stepfun (AI model) - Valuation: $2 billion
• Zhipu AI (AI model) - Valuation: $3 billion
• Biren (Chip design) - Valuation: $2.7 billion
• UBTech (Robotics, listed) - Valuation: $5.5 billion
• Insta360 (Sports camera, listed) - Valuation: $16 billion

Despite these successes, the firm's latest fundraising efforts highlight the changing dynamics in China's tech investment scene.