Asia-focused debt provider for high-growth venture-backed tech firms InnoVen Capital has launched its second China fund – InnoVen China Fund II, a US dollar-yuan dual currency fund that targets a total size of US$250 million and an initial close of approximately US$130 million.

The limited partners ( LPs ) of InnoVen China Fund II come from a variety of backgrounds. The anchor investor is InnoVen Capital, a joint venture between Seviora ( a subsidiary of Temasek ) and United Overseas Bank, while the other LPs include local government agencies.

With the collective backing of both US dollar and yuan LPs, InnoVen Capital, the company points out, is committed to expanding its footprint in China, focusing on providing venture debt financing to high-growth and innovative start-ups.

InnoVen China has been a key player in China’s venture debt market since 2017, supporting over 100 high-growth start-ups, with cumulative disbursements exceeding US$400 million, of which nine companies became unicorns and six were successfully listed.

InnoVen China Fund I was established in November 2021 and, to date, has invested in over 20 high-growth and innovative start-ups, including Mininglamp Technology, NextVPU, CBMG, Moodytiger, ANXIN, Casstime, Weiyun and Autowise.ai.

Despite market uncertainties, the fund has achieved a robust performance with a distribution to paid-in of 13%. Almost two-thirds of the portfolio companies have successfully secured subsequent rounds of financing. The fund achieved its first equity exit in 2023.

Beng Teck Ong, CEO of InnoVen Capital, says: “The new fund will build on our success in identifying such winners in the new economy and supporting them in their next phase of growth.”