Hillhouse Group and Chinese Local Government Set Up $783.5 Million VC Fund

Chinese domestic media outlet The Paper reported on Wednesday that Chinese venture capital (VC) firm Hillhouse Capital Group and the district government of Xishan in Wuxi, Jiangsu province will set up a 5 billion yuan ($783.5 million) VC fund to invest in fields such as biotechnology, carbon neutrality and manufacturing.

The agreement includes establishing a Hillhouse Deep Technology Innovation Center in Xishan, which will assist in the incubation of technology entrepreneurship programs and further cultivation of tech startups.

The above-mentioned special funds will focus on investing in biotechnology, hard technology and software services, carbon neutrality, advanced manufacturing and other fields. The innovation center is to support the transformation of scientific and technological achievements in cutting-edge fields.

Hillhouse Capital will work with universities, research institutions and tech firms to help develop hard-technology entrepreneurial projects, the Beijing-based company said.

Founded by Zhang Lei in 2005, Hillhouse Capital Group focuses on long-term structural value investment and industrial innovation, covering the fields of life and health, hard technology, consumption and retail, carbon neutrality, enterprise services and others. Its investment spans early VC, private equity investment, listed company investment and M&A investment.

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At the beginning of 2020, Hillhouse Capital established Gaoling Tianjin Venture Capital  focusing on early innovative companies, investing in 200 projects so far. Among them, the projects with high proportion of hard technologies such as science and technology and medical care account for nearly 80%.