B Capital Group on Thursday said that it closed a USD 415 million fund for a new category called “Elevate” and that it will open a presence in China, where it appointed former Softbank Vision Fund partner Daisy Cai as country head.
The new fund will provide follow-on capital to later-stage companies within B Capital’s portfolio, according to the firm. It brings its total assets under management to USD 1.9 billion. Through Elevate, B Capital says it aims to support companies “across their life cycles, from early stages to IPO.”
In China, Cai will oversee a team investing in early and growth-stage startups in the developing B2B tech market. “While the country saw a tremendous growth of consumer internet in the past two decades, the next twenty years will be about digital transformation in traditional industries such as healthcare, banking, insurance, and industrials,” said B Capital co-founder Raj Ganguly. B Capital further said it will use its strategic partnership with Boston Consulting Group (BCG) to provide Chinese founders access to BCG’s extensive corporate network and resources.
Daisy Cai pointed out that the firm will invest in data-driven and software-defined businesses. “Healthcare is another strategic focus as B Capital has a track record of successful investing and helping startups with go-to-market and commercialization,” she said.
China’s recovery far outpaced that of other regions. The pandemic also has accelerated the uptake of mobile and digital technologies in the country and Chinese consumers are embracing digital healthcare, a core area of interest for B Capital over the next 10 years. The VC said it will invest around USD 25 to 60 million into each startup, which is a typical check size for the firm.
B Capital was founded in 2015 by Raj Ganguly, Eduardo Saverin, and Howard Morgan. It has offices across the United States and Asia, and has invested in more than 60 early and growth-stage tech companies.
The firm also announced that it will become more active in India and Indonesia, two countries with a fast-growing digital ecosystem. In Indonesia, it backed wholesale marketplace Ula with USD 20 million and fintech platform Payfazz with USD 53 million. It further participated in Kopi Kenangan’s Series B funding round last year. Meanwhile in India, B Capital Group led a USD 60 million investment in Khatabook in 2020 and took part in Byju’s Series F round earlier this year.