(Yicai Global) Sept. 13 -- Sinovation Ventures, formerly known as Innovation Works, co-founded by former Google and Microsoft executive, Mr. Kai-Fu Lee, has completed financing for two venture capital funds.
One, a 300 million US dollar-denominated fund with the bulk of the investment from Foxconn Technology Ltd. [TPE:2354], and a 2.5 billion yuan-denominated fund. Together, the fresh injection of capital totals USD675 million.
The financing will be invested in start-ups specializing in artificial intelligence, enterprise software development, or entertainment content creation, the company announced.
The market is moving away from start-ups that are relying on subsidies to increase market share, toward those capable of achieving profitability within a short period of time. These high-quality start-ups are highly valued and require a massive amount of funding as they grow.
Founded in 2009, Sinovation Ventures has invested in around 300 start-ups to date, the most successful one being Meitu Network Technology Co., the developer of the BeautyCam 'selfie' app, the leading photo-retouching program in China.
Meitu's photo and video apps have over 270 million monthly users. Together with their sister platform MeiPai, which allows users to edit and share personal videos, Meitu has a valuation of over USD3.8 billion.
Meitu submitted a USD500 million to USD1 billion IPO application to the Hong Kong stock exchange on August 19. If the IPO is successful, its valuation will exceed USD 5 billion, making the deal the second largest technology IPO in the world this year, after the Japanese social networking firm, Line.