China’s search engine giant Baidu Inc. has announced plans to set up a new fund worth of US$500 million in its first phrase to invest in Internet and artificial intelligence start-ups.
The fund, named Changcheng Investment Partners, will be the third such fund established by Baidu. In 2016, Baidu set up Baidu Ventures, which raised US$200 million to invest in AI-related early-stage projects, and Baidu Capital, which raised RMB20 billion (US$3 billion) and focuses on mid- and late-stage deals in the internet sector.
Jennifer Li, CEO of Baidu Capital and former CFO of Baidu, will lead the fund. After joining the new fund, Li will no longer be CEO of Baidu Capital.
Jia Dong, former partner at TPG Capital, will be managing partner of the fund. Jia has previously participated in investment deals in JD.com, Ant Financial, Mobike and NIO.
The size of the average deals done by the fund will be between US$20 million to US$30 million, said Baidu.
Last December, Baidu teamed up with China Life Insurance Co., Ltd. to jointly launch a RMB14 billion (US$2.12 billion) investment fund to back companies in the mobile Internet, artificial intelligence, fintech and other advanced technology sectors.
