Early-stage venture capital firm 01VC has completed its first close with USD 60 million for its latest fund to back startups creating new supply chain technologies, robotics automation, enterprise SaaS solutions, and cross-border services. The venture capital firm is reportedly in talks to raise up to a total of USD 100 million.
Founded in 2015, 01VC has successfully invested in unicorn companies including Chinese on-demand logistics and delivery firm Lalamove and Hai Robotics, a company that makes robots for moving and sorting boxes in warehouses.
With offices in Shanghai and Beijing, 01VC’s main investors include endowment funds from universities, family offices, and top Asian funds-of-funds.
Besides investing in early-stage startups that develop technology aimed at streamlining supply chains and boosting efficiency in distribution networks, 01VC is also on the hunt for startups that offer cross-border logistics services.
“Accumulating experience over the past seven years with our early-stage investments has equipped our team with a sharp assessment of the supply chain. We believe in the positive influence that supply chains have on industries and countries around the world, and believe in entrepreneurs who are able to innovate in their niche vertical,” said Ian Goh, managing partner and founder of 01VC.
Amid the global supply chain disruptions exacerbated by the COVID-19 pandemic, VCs have been investing in startups that develop technologies to tackle longstanding supply chain issues.
“The next ten years will be enabled by the likes of big data, internet-of-things, new energy, novel materials, and artificial intelligence. China’s supply chain is becoming more automated and flexible, and meeting more advanced demands. We will continue looking for companies that can successfully leverage tech to drive supply chain development,” said Grace Yu, managing partner of 01VC.
01VC currently manages four funds, with three raised in US dollars and one in renminbi. The firm has been generating an internal rate of return of up to 80% for some of its previous funds, according to the company.
The closing of 01VC’s latest fund comes amid a challenging year for global venture capital firms as economic uncertainty and lackluster returns have prompted investors to hold back following a startup funding boom in 2021. Global funding for startups fell by 23% to USD 108.5 billion in Q2 2022 from the previous quarter, according to a recent report from CB Insights.
Notably, China is leading the global decline in venture capital deals as their value tumbled 44% year-on-year to USD 24.7 billion in the first four months of 2022, according to data from research firm Preqin.