International Data Group (IDG) and Accel Partners have partnered to create a second fund targeted at China, upping the fund size to $510 million.
IDG-Accel China Growth II is substantially larger than the $290 million that the two firms raised for their first fund in 2005.
The success of the first joint IDG-Accel fund is hard to determine. It is only two years old and the firms involved do not distinguish which portfolio companies come from which fund on their websites.
Still, the IDG-Accel team has had some notable portfolio investments. Its partners invested in Chinese Internet portal company Sohu (Nasdaq: SOHU), which raised almost $60 million in a May 2000 IPO; travel site Ctrip.com (Nasdaq: CTRP), which raised more than $75 million in a September 2003 IPO; financial information company China Finance Online (Nasdaq: JRJC), which raised $80.6 million in an October 2004 IPO; and Chinese search engine Baidu (Nasdaq: BIDU), which raised $109.1 million in an August 2005 IPO.
Despite these notable deals, fund-raising for China has been slow. For the first three months of the year, China-targeted venture funds raised just $356 million, down 61% from the same quarter a year ago, when venture firms raised $904 million, according to the market research firm Zero2IPO. —Alexander Haislip