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GGV Capital to Split Into Two Firms, Following Sequoia

(Bloomberg) -- Venture investment firm GGV Capital is splitting into two independent businesses focused on Asia and the US, following a similar move by Sequoia Capital during mounting geopolitical tensions between the world’s two superpowers.

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GGV will become two standalone partnerships, with distinct firms and separate new brands, a move that’s slated to be completed by the end of March, the company said in a statement Thursday.

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“Over the last decade, the investment landscape has shifted significantly, and the operating environment has become highly complex,” GGV said in the statement. “Against these new realities, GGV is also evolving.”

The US partnership, led by managing partners including Glenn Solomon and Hans Tung, will invest primarily in the US and Europe, GGV said. The Asia firm will focus on China, Southeast Asia, and South Asia, from its Singapore headquarters led by Jenny Lee and Jixun Foo. The yuan-denominated funds will continue to operate independently under the Jiyuan brand.

GGV — which manages $9.2 billion in assets — has backed Chinese technology behemoths including Alibaba Group Holding Ltd., ByteDance Ltd., Xiaomi Corp. and Didi Global Inc. Its US portfolio included Airbnb Inc. and Slack, which was acquired by Salesforce Inc.

The move comes three months after Sequoia Capital unveiled its plan to split its Chinese and US operations.

Over the years, venture powerhouses like Sequoia and GGV have managed tech investments across the Pacific, weaving in US endowment and pension money with opportunities in two lucrative internet arenas. Now, as regulatory scrutiny in both Beijing and Washington escalate, these kingmakers are finding it increasingly hard to navigate the policy landscape.

Last month, President Joe Biden signed an executive order limiting US investment in some Chinese firms, part of a push to restrict the country’s ability to develop next-generation military and surveillance technologies that might threaten US national security. The order regulates US investments in some Chinese semiconductor, quantum computing and artificial intelligence firms.

Read more: Sequoia Splits Into Three Firms Amid Geopolitical Tension

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