MPCi

Chinese venture capital firm

MPCi

Native name

| 经纬创投
Formerly| Matrix Partners China
Company type| Subsidiary
Industry| Venture capital
Founded| 2008; 16 years ago (2008)
Founders|

* David Su
* David Zhang
* Bo Shao

Headquarters| Beijing, China
AUM| US$9.6 billion (2024)

Number of employees

| 120 (2024)
Parent| Matrix Partners
Website| www.matrixpartners.com.cn

MPCi (Chinese: 经纬创投; pinyin: Jīngwěi Chuàngtóu) is a Chinese venture capital (VC) firm that is headquartered in Beijing. Founded in 2008, it is the China investment arm of Matrix Partners known as Matrix Partners China before it was rebranded.

## Background

[edit]

Matrix Partners China was founded in 2008 as an affiliate of Matrix Partners to focus on investments in China.[1][2][3][4]

During the 2007–2008 financial crisis, VC firms were cautious to invest. However Matrix Partners China was more aggressive and in ten companies in 2008. Its initial investment fund was US$275 million.[3]

Early on Matrix Partners China would spent weeks and months researching companies and getting to know the founders before choosing whether to invest in them. Its focus was on the technology, media and telecommunications (TMT) sector. However, later on as the venture capital scene in China developed with more competitors like Tencent, Alibaba Group and SoftBank Vision Fund providing funding, the firm had to spend less time doing due diligence. Some decisions on whether to invest only took three hours.[2][3]

In May 2022, The Information reported Matrix Partners China's difficulty in fundraising for its latest fund, Matrix Partners China VII (with a target of $1.5 billion) due to factors such as U.S-China geopolitical risks, weakening economy from COVID-19 lockdowns and suboptimal returns from previous China funds.[5] However, on 31 July 2023, Matrix Partners China VII closed at $1.6 billion making it the largest China-focused fund that year.[6]

Effective 1 July 2024, Matrix Partners rebranded its China and India units as MPCi and Z47 respectively. This reflected greater independence for its China operations but stopped short of a complete split from its international operations. It was compared to Sequoia Capital splitting of HongShan amid geopolitical tensions between China and the U.S.[1][7]

MPCi investments include XPeng Li Auto, DiDi and Ele.me.[4][7] It has also invested in sensitive space companies such as LandSpace, iSpace, Spacety.[8] MPCi investors have included U.S. endowments, pensions and other American-domiciled money although it has not stated how much of its funds comes from U.S. money.[8]

## References

[edit]

1. ^ a b Dong, Cheyenne (2 July 2024). "Matrix Partners rebrands China unit as MPC, emphasizes independence · TechNode". TechNode. Retrieved 29 November 2024.
2. ^ a b Yuan, Li (14 December 2017). "China's Wild Bunch: Startup Investors Are Cashed-Up Cowboys". Wall Street Journal.
3. ^ a b c "Venture capitalist finds room to stretch in Beijing". South China Morning Post. 10 May 2010. Retrieved 29 November 2024.
4. ^ a b Zhao, Yifan (17 May 2024). "Telling founders what to do is a 'common mistake', says award-winning venture capitalist". The Business Times. Retrieved 29 November 2024.
5. ^ Osawa, Juro (26 May 2022). "A Top China VC Firm Struggles to Raise Funds After 10% Return, U.S. Investor Fears". The Information. Retrieved 29 November 2024.
6. ^ Wu, Kane (1 September 2023). "Matrix Partners China raises $1.6 bln for year's largest China-focused fund". Reuters.
7. ^ a b Jiang, Ben (2 July 2024). "Venture capital firm Matrix Partners rebrands China unit, after Sequoia, GGV". South China Morning Post. Retrieved 29 November 2024.
8. ^ a b Alamalhodaei, Aria (2 March 2023). "What do U.S. China restrictions mean for investments?". TechCrunch. Retrieved 29 November 2024.

## External links

[edit]

* Official website

* v
* t
* e

Private equity and venture capital

Investment types|

* Buyout
* Leveraged
* Venture
* Mezzanine
* Growth
* Secondaries
* Equity co-investment

History|

* Early history
* 1980s
* 1990s
* 2000s
* 2010s
* 2020s

Terms and
concepts|

| Buyout|

* Financial sponsor
* Management buyout
* Divisional buyout
* Buy–sell agreement
* Leveraged recapitalization
* Dividend recapitalization

|

Venture|

* Angel investor
* Business incubator
* Post-money valuation
* Pre-money valuation
* SAFE
* Seed money
* Startup company
* Venture capital financing
* Venture debt
* Venture round

Structure|

* Private equity firms and funds
* Limited partnership
* Limited liability company
* Carried interest
* Management fee
* Pledge fund
* Publicly traded private equity
* Business Development Company
* Venture capital trust
* Private investment in public equity (PIPE)
* SPAC

Investors|

* Corporations
* Institutional investors
* Pension funds
* Insurance companies
* Fund of funds
* Endowments
* Foundations
* Investment banks
* Merchant banks
* Commercial banks
* High-net-worth individuals
* Family offices
* Sovereign wealth funds
* Crowdfunding

Related
financial terms|

* AUM
* Cap table
* Capital call
* Capital commitment
* Capital structure
* Distribution waterfall
* EBITDA
* Envy ratio
* High-yield debt
* IPO
* IRR
* Leverage
* Liquidation preference
* M&A
* PME
* Taxation of private equity and hedge funds
* Undercapitalization
* Vintage year

* Private equity and venture capital investors
* Private equity firms
* List of private equity firms
* Venture capital firms
* List of venture capital firms
* Angel investors
* Portfolio companies

*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template