Case | HBS Case Collection | January 2007

Gobi Partners: Raising Fund II

by G. Felda Hardymon and Ann Leamon

Abstract

The three founding partners of Gobi Partners, a venture capital fund investing in early start IT and digital media companies in China, are planning to raise a second fund. The first $51.75 million fund is close to being entirely invested and the portfolio companies are doing well, with two having raised subsequent financings at significantly increased valuations. The firm itself has increased its headcount and opened a second office, but it has not, however, exited any of its companies. How much money should the partners hope to raise, and from whom? The stakes are high, as none of them has taken a paycheck in three years.

Keywords: Venture Capital; Private Equity; Investment Funds; Financial Strategy; Business or Company Management; China;

Citation:

Hardymon, G. Felda, and Ann Leamon. "Gobi Partners: Raising Fund II." Harvard Business School Case 807-093, January 2007.