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GGV Capital Raises $625 Million for Fund IV

Today we announced the closing of GGV Capital’s new $625 million Fund IV.  This new venture capital fund is composed of roughly $520 million in US dollars and $105 million in Chinese RMB, for a total of $625 million (GGV Fund III was $610 million).  Read Tomio Geron’s article about the new fund in Forbes here.

Since the firm’s founding in 2000, we have pursued a consistent strategy – one team investing out of one fund, seeking to back great entrepreneurs and management teams in the US and China.  With Fund IV, we plan to do more of the same.  We couldn’t be more thrilled, and I thought I would share two personal thoughts:

First, our responsibility to entrepreneurs and management teams.  We could not have raised this new fund without the exceptional performance and returns generated by the entrepreneurs we’ve backed.  13 of these teams have taken GGV portfolio companies public since 2010, and several have been involved in some of the technology industry’s largest M&A transactions in the last year (including hiSoft, Buddy Media, Endeca, SuccessFactors, Tudou and Qunar).  The quotes from Lars (Founder/CEO of SuccessFactors) and Gary (Founder/CEO of Tudou) in our press release mean a lot to each of us personally, as they reflect the kind of relationships we seek to build as we invest our capital, our time and every other resource we can bring to bear to try and help drive success.

“GGV Capital was a tremendous growth stage investment partner for SuccessFactors. In an extremely competitive situation, GGV had the foresight to be decisive when others waivered.  It’s that killer instinct that stands out for me,” said Lars Dalgaard, SuccessFactors founder and CEO.  “The GGV team played a major role in our growth, from IPO to expansion into Asia to our ultimate $3.4 billion acquisition.”

Second, our responsibility to our Limited Partners (“LP’s”).  Just like entrepreneurs and CEOs do, we take our responsibility to our investors very seriously.  They are investing with us because they expect GGV to continue to deliver the above-market returns we have since the firm’s founding in 2000.  I won’t go into a tremendous amount of detail here, but suffice it to say that we appreciate our investors’ commitment to GGV (many of whom have been with us since 2000, across four funds) and we clearly understand our mandate.

Thomas, Hany, Scott and Joel founded the firm in 2000 with a unique idea and operating model – one team investing out of one venture capital fund across the US and China.  Twelve years later, we couldn’t be more excited to be investing Fund IV at a time when technologies like mobile, social and cloud computing are creating massive disruption – and the world’s #1 (US) and #2 (China) economies are increasingly intertwined.

From Suzhou, China

Took this photo with Instagram while in Suzhou, China this weekend with our team.  Awesome cloud cover and sunset descending on the 68 story Gate of the Orient building under construction in the Suzhou Industrial Park.

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