InnoVen Capital’s Dual-Currency Fund: $130M Initial Close Signals Strong Singapore-China Ties

InnoVen Capital, the venture debt provider backed by Temasek’s Seviora and UOB, has announced the launch of its second China fund, InnoVen China Fund II, with an initial close of approximately US$130 million. 

This USD-RMB dual-currency fund aims for a total size of US$250 million. The fund has already secured about half of its target, attracting diverse limited partners from various backgrounds. It has an anchor investor in InnoVen Capital Group, a collaboration between Seviora (a Temasek subsidiary) and UOB, along with additional limited partners, including local government agencies. 

The venture debt firm, headquartered in Singapore, plans to support China’s early-stage companies amid challenges such as the country’s slow economic recovery and regulatory uncertainties impacting startups’ access to funding.

Since 2017, the company, known for disbursing over US$400 million to more than 100 startups, including nine unicorns and six listed companies, sees its anchor investor, InnoVen Capital Group, as a crucial player in expanding its footprint in China.

InnoVen Capital’s strategic foray into China gained momentum with the launch of its first China Fund in November 2021, securing an initial close of $50 million. The inaugural fund has supported over 20 startups, showcasing impressive performance, with distribution to paid-in (DPI) ratio of 13 percent despite market uncertainties. 

Noteworthy portfolio companies include Autowise.ai, Moodytiger, and Mininglamp Technology. The fund achieved its first equity exit in 2023, marking a significant milestone in its mission to foster innovation and growth in the evolving Chinese startup landscape.

Each funding round typically involves a ticket size below $20 million, 

employing a mix of debt and equity financing. InnoVen Capital’s aim to nurture high-growth startups in China continues with the launch of InnoVen China Fund II. 

Yingxue Cao, Managing Partner of InnoVen China Fund, emphasized the firm’s integral role in China’s venture debt landscape and the evolution of the New Economy in recent years. With the launch of the second fund, InnoVen China reaffirms its adherence to ESG investment principles. 

The strategic focus spans deep tech, enterprise services, consumer, healthcare, and carbon-neutral sectors. Leveraging its extensive networks within the ecosystem, InnoVen Capital aims to support the innovation of new technologies and business models, contributing to China’s dynamism while delivering superior returns to its investors. As a joint venture between Seviora and United Overseas Bank, InnoVen Capital, with offices in India, China, and Singapore, actively nurtures talented founders across Asia in their business growth journeys.

Also Read:

• MFast Secures $6 Million in Series A Funding to Expand Financial Access Across Vietnam
• India’s Turno raises $13.8M to build a proprietary battery tech platform
• Philippine parenting e-commerce start-up edamama closes $20m Series A funding
• India-based online wealth management platform Scripbox bags US$21 million in a funding round led by Accel Partners
• Singapore logistics platform Janio nets $8m to fuel Asia expansion