China VC Funds Tap Global Investors for $2 Billion in Comeback

China’s largest venture capital houses are tapping the market for at least $2 billion in new funds, re-engaging with the country’s startups in a signal of renewed global investor interest in areas from AI to toys.

At least six of the country’s most prominent VC firms are creating new dollar-denominated funds, designed to allow overseas investors to pool bets on Chinese companies. LightSpeed China Partners, known for backing Meituan and PDD Holdings Inc. in their early days, is targeting at least $400 million for a fund focusing on deep tech, according to people familiar with the matter.

Monolith Management ...