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US-based DCM Ventures, venture capital firm has raised $770 Mn for its various investment funds. Of this amount, $500 Mn will be used for DCM’s eighth flagship global investment fund, $100 Mn (A-fund) for early-stage startups, and $170 Mn (Turbo Fund) for growth-stage companies.
Founded in 1996, DCM Ventures invests in tech companies in the U.S. and China. Japan also accounts for 10% of the VC fund’s investments.
Till date it has invested in more than 280 technology companies such as 58.com Inc, KakaoTalk, YikYak, Eaze, Jawbone, Tuniu Corp. and Vipshop Holdings Ltd.
DCM Ventures looks to invest around $5 Mn to $10 Mn per company with its flagship fund. The firm is interested in bets on artificial intelligence startups, messaging platforms, drones, virtual reality and cross-border technology, such as apps to teach a foreign language.
DCM typically raises money from traditional limited partners, pension funds, and also internet companies such as Tencent, Baidu and SoftBank.
With a focus on financial technology, consumer internet and software-as-a-service, the firm has over 2.8 Bn under its management. DCM also has ambitions to gradually expand its business in Israel, Europe and Southeast Asia.
David Chao, co-founder and general partner, DCM said that the firm was asked to limit money flow into the $100 Mn fund so that it does not conflict with DCM’s main fund. Started in 2011, A-funds is a round of investments in companies that come from a high-risk sector. DCM invests a small amount from these funds but expects a higher loss ratio since it’s a riskier proposition.
As per reports, DCM is exploring the virtual reality sector, and believes that this technology has high potential is China. Majority of the VR hardware is made in China and its gaming market is large.
The development by reported by Venture Beat.
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