BAI Capital racks up $700m to invest in Chinese start-ups

The fund's investors include sovereign wealth funds, large insurance companies, internet companies, funds of funds and anchor investor Bertelsmann.

  • The fund’s investors include sovereign wealth funds, large insurance companies, internet companies, funds of funds and Bertelsmann
  • BAI Capital was formed in 2008 as Bertelsmann Asia Investments
  • Since inception, BAI Capital has invested in more than 200 companies

Chinese venture capital firm BAI Capital has closed on $700 million for a new fund, marking the first time it has raised outside capital.

Investors in BAI Capital Fund I include sovereign wealth funds, large insurance companies, internet giants and funds of funds globally, as well as German conglomerate Bertelsmann.

BAI Capital was founded in 2008 by managing partner Annabelle Yu as Bertelsmann Asia Investments, an investment arm of Bertelsmann. Since 2008, the team of BAI Capital has invested in more than 200 portfolio companies, of which 17 have gone public and more than 40 have been valued at $1 billion or more.

The new fund will invest in companies in retail, financial technology, content, Web3/metaverse, and underlying technology for new types of vehicles and autonomous driving.

“The success of this fundraise is evidence of the sound investment strategy that the BAI team has employed for nearly 15 years,” Yu said in a statement. “We will continue to utilize our deep industry network, operational insights and investment expertise to identify and access compelling investment opportunities and build a diversified and balanced portfolio of early to growth- stage companies to generate meaningful and differentiated returns for our investors.”