Early-stage technology venture capital firm, Future Capital Discovery Fund has secured US$187 million in committed capital as it seeks to further cement its position amid China’s accelerating digitalisation trends.
The new USD Fund IV will focus on investing in early-stage enterprise technology and consumer technology companies in the Greater China region.
Global funds, family offices, foundations and high-net entrepreneurs from the United States, Europe and Asia Pacific make up the partnership arrangements.
Founding Partner of Future Capital Discovery Fund, Mingming Huang says the development marks a major milestone for the firm.
“Despite the current environment, we closed the Fund ahead of schedule with a significant oversubscription, which validates our core investment thesis that digital disruption of traditional businesses is inevitable and will fuel the next decade of economic growth,” he says.
“With China’s accelerating industry digitalisation, we see huge growth potential and incredibly strong demand for enterprise technologies that enable digitised work, business automation, smarter supply chains and logistics.”
“As structural changes across the economy continue to create new investment opportunities, our capabilities and track record of sourcing proprietary deals will enable us to continue to support exceptional entrepreneurs and generate value for our investors,” he says.
The Chinese based fund actively manages three USD and one RMB venture capital funds.
With the close of USD Fund IV, Future Capital has over US$600 million of assets under management.
Future Capital has invested in over 150 companies, including Li Auto, Niu Technologies, Newborn Town, Sensors Data, Duckbill, Narwal, Encootech, Hose, and Taos Data.
As of August 31, 2020, the company says its venture capital funds were on track to reach 8-10x return and a gross internal rate of return of 45%-55%.