Venture capital firms Sequoia Capital China and CMC Holdings have teamed up to form an investment sports fund entity that will finance different global assets, dealstreetasia.com reported.
Citing China Money Network, the article stated that the new joint venture finished its first closing on Monday. No financial details were further disclosed.
The creation of funds focusing on sports can be attributed to the massive growth of China's sports market.
Banking on the sector's continued development, venture partner firms are now targeting to gather internationally-known sports assets and help them gain a footing in the Chinese market.
As of writing, the newly formed fund has already backed Hero Sports, a homegrown eSports game operator. It also a series of financing round for the Chinese boxing operator and video platform, Beijing Wanmingyang Media.
The recent years have seen the two venture capital firms invest heavily in China's sports market. For example, Sequoia has poured in investments in local firms including sports video platforms Douyu TV and ImbaTV, and sports lottery portal 500.com.
Meanwhile, CMC Holdings, together with its affiliate China Media Capital, has cashed in an investment for the City Football Group, sportswear company Meike International, sports marketing entity SECA, sports data firm Cubee Technology, and the sport event management company Ti'ao Power.
According to a 2014 projection by the State Council, China's sports market is expected to grow more than 5 trillion yuan by 2025.
However, in the same year, the sports sector was able to contribute only around 0.6 percent to the national GDP. The figure is lower than the global average, which is 2.1 percent. China obtained this statistic despite the 380 million-strong populace that took part in different local sports events and activities.
Reports have stated that the rising demographics of young consumers is also a contributory factor in the growing sports consumption in China. These consumers' activities include gym memberships and various sports event participation.