China’s technology sector has had breakout successes in e-commerce, social media and smartphones. Venture capitalist Peter Cheng is betting the next big opportunity will be in enterprise software, with local alternatives to the likes of Oracle Corp. and Salesforce.com Inc.
His Eminence Ventures has raised $120 million for its second fund, with backing from Silicon Valley’s Emergence Capital and Hong Kong’s Unicorn Capital Partners. Eminence, founded in 2017, has fully invested its first fund — $37 million raised from dozens of individual investors.
Cheng’s experience in the corporate software sector dates back 25 years to a stint at Oracle, followed by jobs at eBay Inc. and Tencent Holdings Ltd. That helped convince him the sole focus for his venture firm should be startups aspiring to be the next Salesforce or Zoom Video Communications Inc. for China, a nascent $12 billion arena. Some of his startups have already seen their valuations balloon after receiving money from larger venture firms like Sequoia and Temasek, as well as Jack Ma’s Ant Group Co.
“If you keep looking at a sector again and again, when the right deal comes along, you know it’s the right one,” the 51-year-old Cheng said in a video interview from his offices in Shanghai.
Jason Green, founding partner of Emergence Capital, said Cheng is uniquely positioned to capitalize on the startup opportunities in China. Emergence has also seen the…