A new carbon-neutral RMB Fund in China has successfully closed with fresh capital of $140 million from venture capitalists. 

Fresh Capital, based in Shanghai, specializes in early- to mid-stage venture deals and has recently concluded a new RMB-denominated fund worth 1 billion yuan ($139.5 million) dedicated to dealmaking in the carbon-neutral sector.

In a statement issued on Monday, Fresh Capital confirmed the participation of limited partners (LPs) in the new fund, which includes funds-of-funds (FOFs), government guidance funds in China, listed companies, and family offices, though their specific identities remain undisclosed.

Established in 2017 by Steven Hu, following nearly a decade at Cathay Capital Private Equity leading growth-stage investments, Fresh Capital actively sources deals in several domains, including low-carbon energy technologies and applications, energy-saving and carbon reduction solutions, and carbon finance, encompassing carbon emission trading.

The firm places emphasis on investments in the circular economy, supporting businesses involved in sharing, leasing, reusing, repairing, and recycling existing materials and products to address pressing global challenges, such as climate change and biodiversity loss.

Notably, Fresh Capital has built a diverse portfolio of startups, such as Legend Energy, which offers software and hardware solutions for energy storage and management in new energy vehicles (NEVs) used by ride-hailing giant Didi Global and automaker BAIC Motor.

Additionally, Fresh Capital has invested as a Series A investor in Cemt Hydrogen Energy, a successful hydrogen fuel cell system supplier, having raised a total financing of 800 million yuan ($111.6 million) thus far.

Other significant companies in their portfolio include Huayi New Energy Technology, a provider of eco-friendly air conditioning equipment, and Ensonic, a developer of acoustic AI technology for failure detection and maintenance in the energy, electricity, and rail transportation sectors.

One of Fresh Capital’s notable successes includes ATRenew, a trading platform for pre-owned consumer electronics, which completed an initial public offering (IPO) on the New York Stock Exchange (NYSE) in June 2021, raising $261 million.

This latest fund closure follows Fresh Capital’s previous announcement of the first close of its second RMB fund at over 600 million yuan ($83.7 million) in February 2021, with the predecessor fund primarily focusing on investments in the consumer tech and circular economy realms.