DCM’s fifth venture fund closes on $500m

The oversubscribed fund will focus on early stage IT companies in the US, China and Japan.

DCM-Doll Capital Management, a US-based VC firm, has made a final close on $500 million (€390.7 million) for its fifth venture fund. The new fund was oversubscribed, with nearly all of DCM’s existing limited partners committing capital to DCM V.

With DCM V, the firm will continue to invest in its focus area of early stage IT companies within the US, China and Japan.

“DCM’s early stage strategy and unique access to opportunities in Asia have served our previous venture funds well, and will be the driving forces behind DCM V,” said DCM co-founder and general partner David Chao in a press statement.

The new fund is expected to begin investing later this year or early next year. DCM typically invests $3 million to $7 million initially in a company, and may invest up to $15 million total in a particular company. Among DCM’s previous investments are 51job, a human resource services provider in China; internet service provider Internap, based in Seattle and Recourse Technologies, a threat management solutions provider acquired by Symantec.

Earlier this year, DCM made public its plans to invest 4 billion yuan ($500 million, €390.7 million) in China’s IT sector over the next ten years. The firm first began investing in China in 1999, and it plans to invest 20 to 25 percent of its current and future funds in China-based companies, a DCM spokesperson told PEO earlier this year. General partner Hurst Lin joined the firm earlier this year to co-lead DCM’s China efforts and is based at the firm’s Beijing offices.

Along with the fund closing, DCM has also promoted three investment professionals: Carl Amdahl has been promoted to general partner, Ruby Lu to partner, and Gen Isayama to principal.

The firm was founded in 1996 and is based in Menlo Park. With the recent fund close, DCM now has $1.5 billion under management.