DCM Ventures

Last updated
DCM Ventures
Company type private company
Industry Private equity
Founded1996;28 years ago (1996)
FoundersDavid Chao and Dixon Doll
Number of locations
Silicon Valley, Tokyo and Beijing
Website www.dcm.com

DCM (also known as DCM Ventures) is a venture capital firm located in Silicon Valley, Tokyo and Beijing. DCM was one of the first venture capital firms to invest in the early-stage technology sector in China, beginning in 1999. [1] It has increasingly shifted away from Chinese investments due to US sanctions against China. [2]

Contents

History

DCM (formerly Doll Capital Management) was co-founded in 1996 as an investment firm targeting early-stage companies [3] by David Chao and Dixon Doll. [1] [4] It now has operations in Silicon Valley, Tokyo and Beijing. [5] [6] The company has mostly invested in start-ups in the U.S., China, Japan and South Korea [7] [8] [3] but does have additional investments in Europe, the Middle East and Latin America. [9]

DCM general partners include David Chao and Jason Krikorian in the U.S.; Hurst Lin and Ramon Zeng in China; and Osuke Honda in Japan. [10] Kyle Lui is an additional investment partner in the U.S. [10]

Funds

In 2021, Business Insider revealed that DCM's 2014 flagship fund is set to generate $10 billion and a 30x return multiple, making it one of the top performing venture funds in recent history. [11]

In 2020, DCM raised $880 million for its global family of investment funds. [1] The committed capital includes $780 million for DCM IX, its largest global fund to date, and $100 million for its third A-fund dedicated to global seed-stage investments. [12] [13] Since its last fund, DCM has had 17 liquidity events, including Careem (acquired by Uber), Pony.ai, Wrike and Musical.ly (now TikTok). [12]

In 2016, DCM raised $770 million for its investment funds. [14] The firm runs a flagship fund for early-stage companies, a growth-stage investment fund (its Turbo Fund), [15] and the A-Fund, an Android-focused VC fund that targets mobile and emerging platforms from early stage companies. [3] In total, it has about $3.5 billion under management. [5] Between 2013 and 2016, DCM returned $1.5 billion to its investors in profit upon exits from various investments previously under management. [16]

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References

  1. 1 2 3 Yilun Chen, Lulu; Wang, Selena (2020-07-08). "VC Fund Backing Firms Worth $206 Billion Eyes China Startups". Bloomberg. Archived from the original on 2020-07-22. Retrieved 2020-07-30.
  2. ↑ Griffith, Erin (2024-02-21). "Silicon Valley Venture Capitalists Are Breaking Up With China". The New York Times . ISSN   0362-4331. Archived from the original on 2024-02-22. Retrieved 2024-02-22.
  3. 1 2 3 "DCM Ventures raises $770 million for its early-stage, flagship, and growth funds". 14 July 2016. Archived from the original on 17 March 2018. Retrieved 17 March 2018.
  4. ↑ "DCM venture capitalist David Chao on unicorn reckoning, why SoFi's different and passing up Alibaba - Silicon Valley Business Journal". Archived from the original on 2017-02-05. Retrieved 2018-03-17.
  5. 1 2 Levy, Ari (21 December 2015). "This tech VC is increasingly bullish on China". CNBC . Archived from the original on 17 March 2018. Retrieved 17 March 2018.
  6. ↑ Kazer, William (21 November 2014). "DCM China's Hurst Lin Takes Evangelical Approach to Investment". Wall Street Journal. Archived from the original on 17 March 2018. Retrieved 17 March 2018.
  7. ↑ Fannin, Rebecca. "DCM's Deal In Korean Crowdfunding + Platform Showcases Asian Innovation". Forbes . Archived from the original on 2018-03-17. Retrieved 2018-03-17.
  8. ↑ Fannin, Rebecca. "Korea's Social Messaging App Kakao Raises Bar for Tech Startups in Asia". Forbes . Archived from the original on 2018-03-17. Retrieved 2018-03-17.
  9. ↑ "DCM Ventures to raise $100m Android Fund III – DealStreetAsia". www.dealstreetasia.com. Archived from the original on 2018-03-17. Retrieved 2018-03-17.
  10. 1 2 "DCM Closes Latest Global Funds, at $880M". finSMEs. 2020-07-08. Archived from the original on 2020-07-22. Retrieved 2020-07-30.
  11. ↑ Cheng, Candy (July 2, 2021). "VC firm DCM quietly blows out its top tier competitors by generating 30x fund returns. Its secret: Not drinking the Silicon Valley 'Kool-Aid.'". Business Insider. Archived from the original on July 20, 2021. Retrieved July 19, 2021.
  12. 1 2 Chowdhry, Amit (2020-07-14). "DCM Closes $880 Million For New Funds". Pulse 2.0. Archived from the original on 2020-07-22. Retrieved 2020-07-30.
  13. ↑ Geron, Tomio (2020-07-14). "WSJ PRO VENTURE CAPITAL NEWSLETTER: DCM Gathers $880 Million for Funds; How Silicon Valley Leaned on PPP; Foghorn Therapeutics Forms $425 Million Pact With Merck". The Wall Street Journal.
  14. ↑ Geron, Tomio (14 July 2016). "DCM Ventures Raises $770M for Three New Funds". Wall Street Journal. Archived from the original on 17 March 2018. Retrieved 17 March 2018– via www.wsj.com.
  15. ↑ Fannin, Rebecca. "New DCM and IDG Funds Show That China Still Has That Coolness Factor". Forbes . Archived from the original on 2018-03-17. Retrieved 2018-03-17.
  16. ↑ "DCM just raised a new $500 million fund — after returning $1.5 billion to its investors – TechCrunch". techcrunch.com. 14 July 2016. Archived from the original on 2018-03-17. Retrieved 2018-03-17.
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