The China New Era Technology Fund is raising 100 billion Chinese yuan ($15 billion) to invest globally in technology companies. The new company with the backing of the Chinese government will be similar to the $100 billion Softbank Vision fund. The China New Era Technology Fund is being put together by the China Merchants Group, SPF Group and London-based investment firm Centricus.
Dalinc Ariburnu, co-founder of Centricus, was an advisor to Softbank on its fund.
Venture capital is shifting to larger funds. Dalinc makes the case the size of funds and access to markets is critical in a new age of more active sovereign wealth funds.
Sequoia Capital is raising as much as $12 billion between its global growth fund and other venture capital and growth funds in the United States and China.
Super-sized technology funds enable companies they back to have the advantage of super-backing. WeWork’s has funding of $6.9 billion which let’s them out-compete another startup Industrious which only had $142 million in funding.