InnoVen Capital, an Asian provider of venture debt for high growth, venture-backed technology companies, has unveiled the launch of its second China fund — InnoVen China Fund II, a USD-RMB Dual Currency Fund.

The fund targets a total size of $250 million, and an initial close of approximately $130 million has been completed, InnoVen Capital said in a statement on Friday.

According to the statement, 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 wholly owned subsidiary of Temasek) and United Overseas Bank, while the other LPs include local government agencies.

With the collective backing of both USD and RMB LPs, InnoVen Capital said it is committed to expanding its footprint in China, focusing on providing venture debt financing to high-growth and innovative startups.

It is noted that InnoVen China has been a key player in China’s venture debt market since 2017, supporting over 100 high-growth startups, with cumulative disbursements exceeding $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 startups, including Mininglamp Technology, NextVPU, CBMG, Moodytiger, ANXIN, Casstime, Weiyun and

Despite market uncertainties, the fund has achieved a robust performance with a distribution to paid-in (DPI) of 13 percent.

Almost two-thirds of the portfolio companies have successfully secured subsequent rounds of financing.

The fund achieved its first equity exit in 2023.

“In an environment where the global economy is facing multiple challenges and uncertainties, the continued trust and support from our LPs has strengthened our commitment to work with outstanding founders and companies in China to foster innovation and growth,

“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,” said Beng Teck Ong, Chief Executive Officer of InnoVen Capital Group.

Meanwhile, Yingxue Cao, Managing Partner of InnoVen China Fund, said that over the past few years, InnoVen China has been deeply involved in China’s venture debt market and the development of its New Economy.

“With the second fund, we will continue to adhere to ESG investment principles, and strategically focus on deep tech, enterprise services, consumer, healthcare, and carbon-neutral sectors,

“Leveraging our extensive networks in the entire ecosystem, we will support the innovation of new technologies and business models and contribute to the dynamism of China while delivering superior returns to our investors,” she added.

InnoVen Capital is a joint venture between Seviora and United Overseas Bank.

With offices in India, China and Singapore, the firm actively supports talented founders in Asia in growing their businesses.

ADDX fractionalizes venture debt fund by Innoven Capital