Temasek-backed venture debt vehicle InnoVen Capital on Friday announced the launch of a second fund targeting China’s technology companies, seeking to provide capital to high-growth startups in the country despite regulatory uncertainty, reports Nikkei Asia. The InnoVen China Fund II is targeting a size of $250 million and has already raised $130 million, including InnoVen Capital itself as the anchor investor along with contributions from Chinese local government agencies.
Venture debt is a type of loan offered to companies that already have some sort of venture capital funding. InnoVen’s first China fund was established in November 2021.
“Over the past few years, InnoVen China has been deeply involved in China’s venture debt market and the development of its ‘New Economy,'” said Yingxue Cao, managing partner of InnoVen China Fund. “I am delighted that our differentiated strategy has once again been welcomed by long-term value investors.”