Qingsong Fund, a venture capital firm founded by Alvin Liu, a co-founder of Tencent Holdings Ltd., has launched its third investment vehicle with RMB850 million (US$129 million) in committed capital.
The new fund will focus entertainment, education, consumer demand and artificial intelligence. More than 30 limited partners have committed to the fund, including Shenzhen Guidance Fund, Guotouchuanghe National Guidance Fund, Qianhai Fund of Funds, Zhenjiang State-Owned Investment Holding Group, Redbud Capital and Jingbei Investment, according to a company announcement.
Founded in 2012, Qingsong Fund currently has RMB1.3 billion (US$200 million) under management. Its debut fund has seen three investments achieve exits with average realized returns of 2.35 times invested capital, the firm said.
Since its founding the company has shifted its focus from being an angle investor to a venture capital firm, increasing its average deal size from RMB5 million (US$760,000) to RMB10 million (US$1.5 million).
Qingsong previously invested in Dada ABC, an online English language learning platform for kids, Nibiru, a virtual reality technology solutions provider, and Xiaohengshuijiao, a dumpling restaurant operator.
The company says it has invested in over 110 start-ups, with two projects seeing valuations increase 100-fold and 10% of it investment targets increasing valuation by a factor of 10.