IDG, Accel jointly raise China VC fund

US media group IDG and Silicon Valley’s Accel Partners have teamed up as co-sponsors of a $290 million China-focused technology fund.

Boston-headquartered IT media, research and exposition group International Data Group (IDG) and US venture capitalist Accel Partners are co-anchor investors in IDG-Accel China Growth Fund, a new venture fund targeting opportunities in China.

China-based general partner IDG Technology Venture Investment (IDGVC) will manage the $290 million fund. The final close saw the partnership raise $40 million more than it was aiming for, an IDGVC spokesperson in Beijing said.

The result is consistent with a finding that points to record activity Chinese venture capital fundraising. In 2005, international VC firms including first-time entrant Sequoia Capital raised $4 billion for investments in China, according to data compiled by Chinese VC research centre Zero2ipo.

IDG-Accel China Growth fund will invest in fast-growing enterprises in information technology, healthcare, consumer technologies and other emerging technologies in China, the spokesperson said.

IDGVC is a general partnership that has been managing venture capital funds in China since 1992. It has invested in over 140 China-based technology companies from two smaller funds.

Last year, at the time the IDG-Accel China Growth Fund was launched, Patrick McGovern, founder and chairman of IDG said in a statement: “It’s a perfect time for IDG to scale up its investment activities in China as we have been seeing an increasing number of larger investment opportunities.”

IDGVC expects to raise funds again in three years’ time, the spokesperson said.

Established in 1983, Accel Partners has offices in Palo Alto, California and London and manages over $3 billion.