To acquire more tech assets, GSR Ventures is raising $5 billion. (Photo : www.cloudfront.net)
GSR, a Chinese venture-capital company, eyes to acquire more tech assets abroad by raising funds worth $5 billion.
Expected to be announced on Monday, the additional monetary resources will be used in deals regarding the acquisition of technology, Internet and biotechnology companies across the globe.
The firm, which was founded by tech entrepreneurs in 2004, joined the U.S. venture-capital firm Oak Investment Partners in March, raising its profile outside China. In a $2.8-billion deal, it purchased 80 percent of Philips NV's automotive-lighting operations and lighting components.
GSR Ventures made headlines when it invested in some of China's booming startups, such as the taxi haling app Didi Kuaidi Joint Co. and Ele.me.
Recently, Beijing policymakers urged Chinese firms to push its overseas ventures, snapping up technologies that the country imports, such as products from the semiconductor and advanced automotive sectors.
In products such as cars and mobile phones, China is regarded as the largest consumers in the world.
So far, the state-owned Tsinghua Unigroup Ltd. made the most ambitious effort, as it offered a $23-billion deal to acquire the U.S. chipmaker Micron Technology Inc. earlier this month.
Meanwhile, firms from the U.S. and Europe have also been looking for partner firms that will help their operations in China. Foreign companies have also been struggling as the government is favoring domestic entities.
The preference of more companies are venture-capital or private-equity investors who have an experience on global endeavors and are more financially savvy.
