Accel Partners and IDG Technology Venture Investment – the venture arm of US publisher and media company IDG – have teamed up to launch the $250 million IDG-Accel China Growth Fund.
The fund, which will be managed by IDG TVI, will invest in fast-growing enterprises in information technology, healthcare, consumer technologies and other emerging technologies in China.
IDG and Accel are co-anchor investors in the fund, though how much each party has committed has not been disclosed. A press release distributed by Accel said the fund would “gather additional capital from leading institutional investors worldwide.”
IDG TVI claims to have been the first international venture capital company to enter the Chinese market. In addition to providing venture capital, it also provides various services and support to entrepreneurs in hi-tech companies.
Accel Partners, which was founded in 1983 and has offices in Palo Alto, California, and London. It has over $3 billion under management.
The launch of the fund comes at the same time as a report by the Asian Venture Capital Journal showing that investment in Chinese private equity fell 44 percent in the first half of this year to $659 million. Investors have been deterred by a clampdown on the use of offshore vehicles to acquire companies.