By Samuel Shen and Jacqueline Wong
SHANGHAI, Feb 17 (Reuters) - Healthcare-focused venture capital firm Vivo Ventures said on Friday it would accelerate investment in Chinese and U.S. companies with a strategy of fostering collaboration between them, after raising $375 million in its seventh fund.
The U.S-based company will invest 55 percent of the newly raised capital in the United States and the remainder in China, where Vivo Ventures already has 12 portfolio companies, and plans to add three by the end of this year.
Vivo’s strategy, dubbed the Bridge, is to identify companies with promising development and commercial-stage therapeutic products in the U.S. and revenue-stage companies in China, with the goal of building synergy between them and maximize returns, Managing Partner James Zhao told a conference in Shanghai.
“An increasing number of Chinese companies will seek to expand overseas, Zhao said.
“We hope to create synergy between U.S. and Chinese companies, and maximize shareholder value. Cooperation is better than competition and alliance is better than isolation.”
Vivo has previously helped Chinese companies including China Kanghui Holdings and Sagent Pharmaceuticals to sell shares publicly in the U.S.
Founded in 1996, Vivo has more than $1 billion under management and has invested in nearly 100 companies, with total capital returns of 2.6 times, according to the company.