Xiaomi's Lei Jun and JD's Liu Qiangdong back $67M fund run by early Xiaomi backer
What's the deal? 5Y Capital has raised a US$61.9M venture fund whose backers include Xiaomi founder Lei Jun and JD.com founder Liu Qiangdong. The fund, Shanghai Wuyuan Shiyuan Private Fund PartnershipDealroom has a profile for this one. Try Dealroom →, is controlled by 5Y founding partner Liu Qin.
Who put in what? Xiaomi's Hanxing Venture CapitalDealroom has a profile for this one. Try Dealroom → subscribed US$13.8M, or 22.22%, making it the largest limited partner. Suqian TianqiangDealroom has a profile for this one. Try Dealroom →, the investment platform of Liu Qiangdong and his wife Zhang Zetian, subscribed US$6.88M, or 11.11%.
The other backers: The fund added 11 new partners on September 15, expanding its subscribed capital from US$1.38M. Other LPs include Qingdao Jishi Heritage FundDealroom has a profile for this one. Try Dealroom →, industrial firms Sichuan Esheng Cement GroupDealroom has a profile for this one. Try Dealroom → and Jiangsu Hubao GroupDealroom has a profile for this one. Try Dealroom →, and two individuals. The subscription deadline runs to June 30, 2035.
Why it matters: Liu Qin was Xiaomi's first investor, putting $5 million into the company in 2010 for a reported 866-fold return. Lei Jun later became a capital contributor to Liu Qin's funds; now the two founders' money sits in the same vehicle.
The backstory: Liu Qin co-founded Morningside CapitalDealroom has a profile for this one. Try Dealroom → in 2008, backing Chinese internet and technology companies including CtripDealroom has a profile for this one. Try Dealroom →, Xiaomi, Kuaishou, and Kingsoft OfficeDealroom has a profile for this one. Try Dealroom →. The firm renamed itself 5Y Capital in October 2020, after its original 12-year branding agreement with Hong Kong's Morningside GroupDealroom has a profile for this one. Try Dealroom → expired.
What's unclear? Where the US$61.9M will go. No investment focus has been disclosed.
The signal: Two of China's best-known tech founders are channelling capital back to the investor who bankrolled them, a sign of how tightly China's tech and venture worlds remain interwoven.
Read more: eu.36kr.com
Image credit: ·JERRYANG·
