US, Asia-based DCM raises $880m fund pair thanks to stellar past performance

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US and Asia-based early stage investor DCM Ventures has closed its biggest family of funds to date by hauling in $880m across a pair of new vehicles.

The committed capital includes $780m for DCM IX, its largest ever global fund, and $100m for its third A-fund dedicated to global seed-stage investments.

AltAssets revealed in September last year that DCM had registered more than $760m for its ninth flagship fundraise, well ahead of its $500m predecessor vehicle.

DCM said the funds would primarily target early-stage investments in SaaS & vertical cloud solutions, next-generation B2B & B2C financial technologies, as well as “category-defining” consumer internet companies.

The firm said it had invested heavily in early-stage tech companies since the $500m close of its last flagship fund in 2016, with more than 80% of those investments at seed or Series A.

DCM said its aggregate IRR over the past ten years was more than 50%. It says its 2014 Fund currently stands at a gross return of around 7x, making it one of the top performing venture funds of its vintage globally.

DCM’s 2011 Growth Fund stands at over 5x gross return, with more than 3x already distributed to limited partners, while DCM’s 2011 Seed Fund stands at over 4x gross return, it added.

The firm now has $4.2bn of assets under management following the launch of DCM IX.

David Chao, DCM co-founder and general partner, said, “DCM was the first Silicon Valley firm to invest in the early-stage technology sector in China and Japan beginning in the late 90s.

“Since then, we’ve continued to deliver strong returns to our limited partners, while executing our global investment strategy across the three largest technology markets: US, China and Japan.”

Since 2019, DCM has had seven initial public offerings, including Bill.com, one of 2019’s strongest IPOs, which now has a market cap of about $5bn.

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