Chinese VC Firm AlphaX Partners Raises $314M Debut Dual-Currency Fund

AlphaX Partners, a Chinese venture capital firm founded by three veteran Chinese investors, have raised its debut fund with RMB2 billion (US$314 million) in total capital commitments, the firm announced today.

The debut fund, a dual-currency vehicle denominated in both U.S. dollar and RMB, raised capital from central government-level policy guidance fund, institutional investors from Europe and the United States, Chinese public companies and entrepreneurs.

Specifically, the limited partners in the fund include a government guidance fund affiliated with CICC, a government guidance fund in Shanghai’s Minhang district, CreditEase, Zero2IPO Group, Focus Media, Qihoo 360 and others, according to the announcement.

The fund will mainly back companies focused on combining Internet with traditional industries, consumer upgrade themes, education, and emerging tech. It has already invested in a number of companies, including a Chinese enterprises cyber security company 360 Enterprise Security, an education firm Gaosi Education, gaming live-streaming platform Chushou TV and others.

The firm plans to leverage its international experience and network to help Chinese tech start-ups reach the next level, says the announcement.

AlphaX Partners was founded in 2016 by Thor Hongchuan, who was the founder of Highland Capital China, and Yao Yaping, an investment banker with 11 years of experience. A third partner is Yu Guangdong, who was previously an executive at Chinese Internet security firm Qihoo 360.