5Y Capital () is a

Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...

-based

venture capital Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...

firm founded in 2008. It was previously known as Morningside Venture Capital before it rebranded in October 2020.

Background

5Y Capital was founded in 2008 by Ken Shi and Richard Liu under the name, Morningside Venture Capital. Prior to founding the firm, Liu and Shi worked as

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

professionals at the Morningside Group, a family office founded in 1986 by Gerald Chan and his family. The Chan family currently runs the

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Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...

. As a gesture of support, Morningside Group authorized the firm to use the ‘Morningside’ brand in its operations as well as being a key investor in the firm. In October 2020, the firm rebranded to 5Y Capital. The name comes from 'Wuyuan Road' which is the street where the firm has been headquartered since its inception. In 2021, Bloomberg reported that the firm was seeking to raise a new fund, and that it had delivered a $30 billion return on its investment in

Kuaishou Kuaishou Technology ( zh, c=快手, l=quick hand) is a Chinese publicly traded partly state-owned holding company based in Haidian District, Beijing, that was founded in 2011 by Hua Su (宿华) and Cheng Yixiao (程一笑). The company, liste ...

. It closed a number of funds after reaching hard caps that year. In November 2023, it was reported that 5Y Capital was on track to surpass its target of raising $700 million for its new fund. This came when fundraising during the year had significantly declined due to various factors such as the

China–United States trade war An economic conflict between China and the United States has been ongoing since January 2018, when U.S. president Donald Trump began Tariffs in the first Trump administration, imposing tariffs and other trade barriers on China with the aim of fo ...

that limited US investments in Chinese firms.

Investment model

5Y Capital focuses on early-stage venture investments in different sectors. Notable investments include

Xiaomi Xiaomi (; ) is a Chinese multinational corporation and technology company headquartered in Beijing, China. It is best known for consumer electronics software electric vehicles. It is the second-largest manufacturer of smartphones in the worl ...

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, Pony.ai and

XPeng Guangzhou Xiaopeng Motors Technology Co., Ltd., Trade name, trading as XPeng Motors ( zh, c=小鹏汽车, p=Xiǎopéng Qìchē), commonly known as XPeng, is a Chinese electric vehicle manufacturer. The company is headquartered in Guangzhou, Guan ...

References

External links

Official Website
{{authority control Chinese companies established in 2008 Financial services companies established in 2008 Investment management companies of China Venture capital firms of China