The term “capital winter” has been bandied about in the China tech scene since 2017 when the number of investments saw a decline from 2016 and 2015. However, Eight Roads Ventures, the proprietary investment arm of Fidelity International, is bucking the trend by launching a $275 million China technology fund. The new fund is dedicated to backing China-focused cross-border fintech, enterprise, and consumer tech.
When asked why Eight Roads is launching the tech fund at this time, Ted Chua, a partner at the firm, explained that it was a natural thing for Eight Roads to form a separate fund. “We’ve always invested in technology and healthcare,” Chua said at the launch event for the fund.
“There are no borders in technology—it’s a global game and we need to help Chinese entrepreneurs on a global scale,” Managing Partner Jarlon Tsang said in a press release.
Eight Roads, formerly Fidelity Growth Partners, is one of the earliest international venture capital firms to set up shop in China. They have invested in the Chinese technology and healthcare sectors for over 20 years. The firm has invested in Alibaba since series A back in 1999 and the Chinese tech giant remains in their portfolio to this day. The tech fund follows the $250 million China healthcare fund Eight Roads launched in September 2017.
While Eight Roads has invested in notable e-commerce and healthcare startups, it has also picked less obvious companies. In 2017, Eight Roads led a round of investment into Mama+ which runs the Davdian e-commerce platform and online community targeting mothers in China. Fishtrip is a traveling booking service focused on boutique accommodation and experiences which has received Eight Roads investment.
To date, Eight Roads has invested in 85 Chinese companies and almost $6 billion into growing companies worldwide.