Early stage venture firm Cherubic Ventures has announced a brand new target fund of $120 million. The firm has already made good headway and seems to have managed to accumulate $80 million in confirmed commitments from LPs.
Started in 2010, the firm has holdings in almost 90 companies, including Hyperloop, Luxe and Wish in the U.S. and Cloud Union, Pinkoi and others, in Asia. Interestingly, the firm has chosen U.S. and Asia, the most developed and the fastest developing market, to focus most of its attention upon.
The company is planning to split its latest fund — once they raise it — into two different parts. While a slightly larger, $70 million fund will be put aside to companies in the US and other global regions, a $50 million fund will be used to invest in Chinese businesses.
The company favours investing in seed businesses as opposed to already established ones. This fund will be no exception, a statement further corroborated by Matt Cheng, founder of Cherubic Ventures, who said that it will be used to invest in 60-70 companies.
However, the founder also stated his preference for experienced entrepreneurs as opposed to completely green guys with an idea, while speaking to TechCrunch.
We focus on the more experienced entrepreneurs. So when we back them and they grow the company we want to stay with them.
As for the niches the firm will be on the lookout for, Cheng stressed upon Virtual Reality and deep technology — two areas that have been generating significant investor attention of late.
With regards to China, Cherubic would be looking for startups in relatively — as compared to investor attention generated by say, cab aggregation — lesser popular niches, including cross border commerce and introducing advanced tech such as machine learning to manufacturing.
Cherubic also announced its intention of opening a brand new office in Shanghai, — in addition to the already established ones in Beijing, Taipei and San Francisco — and increasing its workforce.