An early backer of Chinese tech companies such as Moonshot AI and Xiaomi Corp, 5Y Capital is seeking to raise some US$600 million in early 2027, with fundraising starting later this year, they added, asking not to be identified because the information is private.

The growth fund will deploy money to follow-up rounds for some of its best performing companies in its early stage portfolio and for new firms, the people said. Bambu Lab is among those it’s backed, they added. Shanghai-based 5Y Capital had planned to raise at least US$1 billion for the first growth fund in 2021, people familiar with the matter said at the time. Its last venture fund, which had a hard cap of US$800 million, was oversubscribed.

The company declined to comment in an emailed statement.

A number of China-focused fund managers are attempting to raise money from global sovereign wealth funds, family offices and endowments. Hong Kong-based IDG is also targeting to secure about US$2 billion for a growth fund to invest in consumer-focused firms in countries including China. GSR Ventures Management Co, an early investor in Chinese social media app RedNote, is seeking some US$350 million to invest in China’s venture capital space.

Artificial intelligence opportunity-focused funds have proved attractive for investors. Another Moonshot backer, Monolith Management is seeking to raise about US$500 million. Together, the funds are testing investor appetite for China opportunities as global investors reassess the country’s startup landscape following Deepseek’s breakthroughs.

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