DCM, an early-stage global venture capital firm, announced it has closed its largest family of funds to date, totaling $880 million. The committed capital includes $780 million for DCM IX, its largest ever global fund, and $100 million for its third A-fund dedicated to global seed-stage investments.
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“We are dedicated to being a trusted partner and helping entrepreneurs build scalable and sustainable businesses globally.”
This family of funds will primarily target early-stage investments in SaaS & vertical cloud solutions, next-generation B2B & B2C financial technologies, as well as category-defining consumer internet companies. Since its last flagship fund of $500 million in 2016, DCM has heavily invested in early-stage technology companies with 82 percent of companies being initially invested at the seed or Series A stage. With the launch of DCM IX, the firm now has $4.2 billion in assets under management.
“DCM was the first Silicon Valley firm to invest in the early-stage technology sector in China and Japan beginning in the late 90s. Since then, we’ve continued to deliver strong returns to our limited partners, while executing our global investment strategy across the three largest technology markets: U.S., China and Japan,” said David Chao, DCM co-founder and general partner.
Limited partner distributions and IPO proceeds for the past three years exceeds $2.2 billion, compared with a historical average fund size of about $500 million. In the past ten years, DCM’s aggregate IRR (internal rate of return) across all investments globally is over 50 percent. “Our global platform and deep local expertise has enabled us to consistently source compelling investments, facilitate strategic partnerships, and create exit opportunities for our portfolio companies, resulting in exceptional realized returns over the past decade,” said Ramon Zeng, general partner of DCM China.
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