Venture Capital Monthly Report | HongShan Sequoia China: March Investment Growth Both Year-over-Year and Month-over-Month, Reinvests in XPeng and Huitian After Five Years

Produced by: Sina Finance Venture Capital Plus

Author: Yi She

Based on incomplete statistics from publicly available data, in March 2026, the number of private equity and venture capital fund managers newly added was 3, a year-over-year and month-over-month significant decrease of 84.2% and 40.0%, respectively. The number of newly filed private equity investment funds was 165, and venture capital funds was 517; in total, 682 new funds were added. Compared with the same period in 2025, this represents a significant increase of 94.3%, and compared with February, it increased by 29.2%.

Both investment-side activity and deal amounts hit new highs in the recent period. In March, there were 798 investment events in China in total, up 45.1% month-over-month and a substantial 69.4% year-over-year. The disclosed total investment amount summed to RMB 69.45B, up 30.6% month-over-month, and year-over-year it achieved a doubling growth of 134.8%.

Sina Finance Venture Capital Plus focuses this month on three institutions with relatively high market activity. The analysis is carried out around their investment pace, stage, industry preferences, and investee projects, among other aspects.

More than 40% of Investments Flow to Artificial Intelligence, With Dual Track Deployment in the Greater Bay Area and the Yangtze River Delta

Based on information publicly disclosed by the Asset Management Association of China for Securities Investment Fund Industry, the U.S. Securities and Exchange Commission (SEC), and Tianyancha, it shows that Sequoia China was founded in 2005 and focuses on three areas: technology, healthcare, and consumer. In 2023, Sequoia China launched a new brand, “HongShan,” operating independently. It then completed fundraising of $9 billion, including a seed fund, a venture capital fund, a growth-stage fund, and an expansion fund. To date, its assets under management exceed $55B, with cumulative participation in more than 1,500 companies; its publicly listed investees under its portfolio have exceeded 160, and its unicorn companies exceed 140.

As of March 2026, Sequoia China has not registered or filed any funds in China. Looking back to 2025, over the entire year, the institution registered and filed only one new fund—Xiamen Qinglan Equity Investment Partnership (Limited Partnership)—with a registered contribution amount of RMB 10 million. The fund’s two LP capital contributors were Ju Qing and Ji Hui Equity Investment (Xiamen) Co., Ltd. The latter’s upstream equity-through shareholders were Zhou Kui and Ju Qing. Zhou Kui is a partner of Sequoia China, while Ju Qing is his wife. Ji Hui Equity Investment (Xiamen) Co., Ltd. invested in another fund, Chuanhe Xin (Xiamen) Equity Investment Partnership (Limited Partnership). Its 7 external direct investments are all Sequoia China’s filed funds. From this, it is inferred that the new fund may be a feeder fund used in the same way to invest into the master fund.

Within the统计 period, the equity investment events publicly disclosed by Sequoia China totaled 16, about four times the level of the same period in 2025. Compared with February, it doubled, and in the first quarter overall it showed an active and proactive posture toward deployment. Based on data from prior periods, Sequoia China’s monthly average number of investment events in 2025 generally fluctuated within a range of 3 to 7. Although November saw a clear peak, it also quickly fell back; overall, its pacing remained relatively steady. Since entering 2026, the institution’s investment frequency has noticeably accelerated, indicating an active grasp of current market opportunities.

In terms of investment stage, among the investment events Sequoia China participated in this month, the combined share of the early-stage angel rounds and Pre-A rounds is 56.3%, with angel rounds accounting for more than about one-third. This suggests the institution is actively sourcing and cultivating the most promising startup teams and cutting-edge technologies, laying out from the source for the future. Companies receiving investment at the A round also account for about one-quarter, strengthening its focus on growth-stage enterprises. The goal is to accompany companies through key phases of growth and share the benefits of their rapid development.

In terms of industry distribution, Sequoia China’s investees this month are重点 concentrated in the artificial intelligence sector, accounting for 43.8%, covering multiple areas such as large models, AIGC, and general-purpose applications. Advanced manufacturing and enterprise services follow next; the number of invested events accounts for approximately 25.0% and 12.5%, respectively. This reflects the institution’s continued deployment in “hard-tech” areas such as manufacturing upgrades, high-end equipment, and new materials, along with its long-term attention to the digital and intelligent transformation trend.

Regarding investment regional distribution, about 37.5% of Sequoia China’s capital went to Shenzhen, and Guangdong (excluding Shenzhen) accounted for 6.3% of the invested enterprises; the Greater Bay Area is a key focus for deployment. Jiangsu ranked second with a 25.0% share. Shanghai and Zhejiang each accounted for 6.3% of investment events, further consolidating the strategic position of the Yangtze River Delta in Sequoia China’s investment map.

Double Down on Low-Altitude Flying Cars: XPeng Aero, or May Submit a “Secret” Filing to the HKEX

eVOLT low-altitude flying vehicle R&D firm “XPeng Aero” recently completed financing of nearly $200 million. Investors include Hillhouse Capital, Sequoia China, HighRong Capital, Dachen Finance & Wisdom, and others. This is also Sequoia China’s additional investment again since its A-round financing in 2021. After this round of financing is completed, XPeng Aero’s total financing amount will reach $1 billion. It will be the company with the highest financing amount in Asia’s manned low-altitude flying sector.

Founded in 2020, XPeng Aero’s current aircraft mainly include two models: “Land Aircraft Carrier” and the A868. Among them, “Land Aircraft Carrier” is the core mass-production aircraft, seating two people. With a one-button operation, it can separate the ground and flight modules. Only a C-category driver’s license is needed, and orders have already accumulated to 7,000. The A868 is equipped with the Kunpeng super-range extension system, with a range of over 500 kilometers, a maximum top speed of 360 km/h, and a 6-seat cockpit design that fits business travel needs.

According to publicly reported information in early 2026, the company has hired JPMorgan and Morgan Stanley as joint sponsors, or may submit an IPO application to the Hong Kong Stock Exchange through a “secret filing” mechanism.

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Responsible editor: Yang Shu