Google's former China chief raises US$674m in new funds

[HONG KONG] Sinovation Ventures, the venture capital firm founded by former Google Inc executive Kai-Fu Lee, has raised more than US$674 million for two new funds that will seek out investments in China and the US.

The firm formerly known as Innovation Works recently closed its second yuan-denominated fund and its third US-dollar fund, taking the total amount under management to more than US$1.2 billion. The seven-year-old investment outfit now plans to add to a portfolio of almost 300 startups that include app store Wandoujia and Meitu, a developer of selfie apps that's close to listing in Hong Kong.

"The new dual-currency funds will strengthen our investment capacity," Mr Lee said in a statement. "Sinovation Ventures has investment teams both in China and in the United States, that could grasp pivotal investment opportunities in the two countries."

Mr Lee's firm operates in a manner similar to Y Combinator Inc, the American startup incubator. Its successful fundraising comes as venture capital investment cools after 2015's record pace. Chinese-based venture capital firms raised just US$400 million in the second quarter, the lowest figure in almost three years, according to London consultancy Preqin Ltd.

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