Chinese firm sets up $100M VC fund in Silicon Valley

Fosun International launches a venture capital arm in the U.S. tech startup hub, setting aside US$100 million toward investments in mobile internet and phones.

Startups in Silicon Valley, particularly those aiming to expand in China, can now tap a new US$100 million fund set up by Chinese organization, Fosun International.

The funds will be managed by its new venture capital arm, called Kinzon Capital, and investments will be targeted toward mobile phones and mobile internet, reported Wall Street Journal, which cited Fosun's chairman Guo Guangchang. He added that startups keen to expand in China will stand out. 

Currently Mainland China's largest private-owned conglomerate, Fosun was founded in 1992 and currently operates in various industries including healthcare and real estate, as well as runs assets and investment management funds. The company is listed on the Hong Kong Stock Exchange. 

"Fosun is transforming into a global investment firm, and venture capital and technology are core to the portfolio," noted Brad Bao, managing director of Kinzon, which he said would help push this goal. 

Elaborating on its investment strategy, Guo said: "We are looking at a lot of things." He pointed to mobile internet, which he said would "change every industry". In particular, startups dealing in mobile games, chat, payments, and cloud computing will be of interest to the venture capital fund, he added. 

Fosun's investment business last year managed some US$7 billion in capital and it had invested in several Chinese internet companies, including online games developer Perfect World, and e-commerce company Ali-Small Loan, reported Wall Street Journal.