China’s venture capital market has had its first blockbuster fundraising of 2026, underscoring renewed global appetite for the country’s hard-tech sector. Luminous Ventures, formerly known as Lightspeed China Partners, just closed its latest dual-currency fund, raising more than 5 billion yuan ($700 million).
The Beijing-based investor said it had raised $460 million for its sixth early-stage U.S. dollar fund, alongside 2 billion yuan for a new yuan-denominated vehicle. Both funds were oversubscribed, marking the firm’s largest fundraising to date and the biggest venture capital raise in China so far this year. The firm now has a war chest of more than 7 billion yuan available for investment, including roughly $200 million from a previous dollar fund.
Global appetite for hard tech remains strong
Limited partners in the dollar fund include sovereign wealth funds, university endowments, pension funds, fund-of-funds, family offices and multinational technology groups, spanning the U.S., Europe, Asia and the Middle East. Notably, five sovereign wealth funds joined the latest vehicle, highlighting continued international interest in China’s technology sector despite geopolitical tensions.
The yuan-denominated fund, meanwhile, reached its first close within six months, drawing support from state-backed guidance funds, industrial investors, market-oriented fund-of-funds, university foundations and entrepreneurs within Photon’s portfolio ecosystem.
James Mi, founding partner of Luminous Ventures, said the firm’s ability to consistently attract capital rested on its long-term focus on early-stage investing and deep sector expertise. “Over the past 15 years, our understanding of the industry and forward-looking positioning have been the foundation of our investors’ trust,” he said.
He added that China’s leading technology companies are rapidly strengthening their innovation capabilities, making the country a focal point for global capital. A dual-currency structure, he said, allows portfolio companies to access more flexible resources and cross-border support as they scale internationally.
IPO pipeline set to accelerate in 2026
Despite exceeding its fundraising targets, Luminous Ventures deliberately capped the final size of the funds to preserve operational efficiency. “We want to ensure we can deliver strong returns,” Mi said.
The firm is already seeing exits accelerate. Over the past year, six of its portfolio companies have gone public including retail digitizer Hanshow Technology (301275.SZ) and GPU champion MetaX (688802.SH). The momentum has carried into 2026 with the Hong Kong IPO of Zhipu AI (02513.HK), which now has a market cap of more than HK$400 billion ($51 billion). As many as 10 additional portfolio companies could list in 2026, including Unitree Robotics and AI drug delivery specialist Jitai Pharmaceuticals.
Luminous Ventures has maintained a high hit rate across shifting economic cycles. The firm’s track record spans the consumer internet era, with early bets on Pinduoduo (PDD) and Meituan (03690.HK), to the current era of hard tech infrastructure, exemplified by its early stake in Innolight (303008.SZ), now valued at over 800 billion yuan.
Its more recent bets center on artificial intelligence and advanced manufacturing, including Muxi, Zhipu and Unitree, which have emerged as leaders in their respective fields.
Early bets on frontier technologies drive returns
Mi attributes the firm’s investment success to its ability to identify trends early and develop deep technical understanding. Its core team is composed largely of engineers and industry specialists with experience at leading global technology companies, enabling it to assess emerging sectors before they reach mainstream consensus.
For example, the firm began researching nuclear fusion two years before it became a popular investment theme, backing companies such as Nova Fusion and Dongsheng Fusion. It also moved early into the deep sea economy, investing in underwater robotics company Deepinfar ahead of its inclusion in China’s national development plans.
“Investment is ultimately the monetisation of cognition,” Mi said. “The key is deep thinking about industries and continuous learning.”
Artificial intelligence remains a central focus. Luminous Ventures has built a comprehensive portfolio spanning computing infrastructure, foundation models and next-generation hardware. Its investments range from AI chips and robotics to applications in drug discovery and content generation.
As technological change accelerates, Mi said the firm aims to continue identifying entrepreneurs capable of defining the next wave of innovation. “Our goal is to become one of the most influential venture capital firms in China’s technology sector,” he said.
Source
ChinaVenture
