(Yicai Global) July 29 -- Joy Capital, which has invested in China's Luckin Coffee, bike-sharer Mobike and electric car firm Nio, has closed a USD700 million fund to invest in early-stage startups in China, seeking to spur growth amid an economic slowdown.
The investors are a group of familiar limited partners as well as new ones, including public pension funds and large insurance companies, The Paper reported today, citing the Beijing-based firm, which manages funds worth CNY10 billion (USD1.45 billion).
Chinese internet companies entered a "capital winter" in late 2018 as the firms raised less money in the second half of the year, Yicai Global reported earlier this month. But high-tech businesses in artificial intelligence, semiconductors, health, and online education have managed to buck the trend.
Joy Capital expects the digital transformation and upgrade of China's traditional sectors, represented by Luckin Coffee and Mobike, to gather pace and the new fund will go toward supporting the country's tech innovation, it added.
Liu Erhai, the former managing director of Legend Holdings, co-founded Joy Capital in 2015. The firm counts international sovereign wealth funds, education-focused endowment funds, and family funds among its investors.
Editor: Emmi Laine