Israel’s Pitango to Raise a China Fund – Will it Work?

Pitango, one of Israel’s largest venture capital funds with $1.3 Billion in assets under management, plans to team up with state-controlled Shenzhen Capital Group to launch a $100 to $200 million fund with a focus on Chinese start ups. Will the effort bear fruit?

Headed by Chemi Peres, son of Israel’s president Shimon Peres, Pitango is a big brand name in Israel’s venture capital industry. Sources have told PE Hub that a Pitango delegation led by Nechemia (Chemi) Peres is traveling in China this week, to meet Chinese government officials and business partners including senior representatives from Shenzhen Capital. Chinese state media on Wednesday reported Peres’ visit without giving further details about Pitango’s fund plan.

Pitango is not the only Israeli fund targeting the growing  Chinese high-tech industry. Infinity Equity, a smaller Israeli VC fund, has $600 million under management in three funds, two of which operate in China.  The most recent of those funds is Infinity-I China. Infinity I also took the partner route and was funded by both Israeli and Chinese sources.  On the Israeli side by Nochi Dankner’s IDB Development Group and Clal Industries. On the Chinese side, Infinity I has the backing from state-owned China Development Bank and China Singapore Suzhou Industrial Park Ventures Co, a firm backed by both Singaporean and Chinese governments.