China’s Joy Capital Closes Over $700M New Fund For TMT And Consumption Fields

Joy Capital, a venture capital firm that has backed Chinese Starbucks challenger Luckin Coffee, announced on Monday the final closing of an early-to-growth-stage fund at over US$700 million, reloading its ammunition to back start-ups in the fields of technology, media, telecommunications (TMT) and innovative consumption.

The completion of the new fund took the capital managed by the Chinese investment firm to over RMB10 billion (US$1.45 billion), said Joy Capital in a statement. The company said that the fundraising attracted the continuous support of its existing limited partners, with the participation of several public pension funds and large-scale insurance companies. The company did not provide more detailed information on the investors.

"Joy Capital firmly believes that the construction of new infrastructure will undoubtedly bring entrepreneurial and investment opportunities to China. The company will keep focusing on investments in technological innovation, as well as the transformation and upgrading of industries," said Joy Capital.

Joy Capital was founded in 2015 by Liu Erhai, the former managing director of Chinese venture capital firm Legend Capital, where he led the company’s TMT and innovative consumption team. The company mainly backs start-ups at both early and growth stages. It has poured money into some of the fastest-developing companies in China, including electric vehicle start-up NIO, bicycle-sharing system Mobike, and internet leasing apartment operator Danke Apartment.

The venture capital company was looking to raise up to US$300 million for a new fund named "Joy Capital Opportunity," according to a regulatory document filed by Joy Capital in November 2018. Joy Capital Opportunity is one of four funds that Joy Capital has filed so far. The other three funds are "Joy Capital III," which raised US$385 million, "Joy Capital II" with a target of US$300 million, and the company’s US$200 million debut fund, "Joy Capital I."

Most recently, Joy Capital led a series A round worth RMB100 million (US$14.78 million) in Chinese mobile game developer Code View in May 2019. The company also backed Luckin Coffee in a US$150 million in a series B+ round in April.

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