Legendary VC firm Sequoia also underwent a similar transformation in June.

Venture investment firm GGV Capital is undergoing a restructuring into two independent entities, one focusing on Asia and the other on the US, a move similar to Sequoia Capital’s recent three-way split. This realignment of the firm’s business aims to address the challenges posed by mounting geopolitical tensions between the US and China.

GGV Capital will become two distinct partnerships, each with its own brand, with the process expected to conclude by the end of March. The US-focused partnership, led by managing partners like Glenn Solomon and Hans Tung, will primarily invest in the US and Europe. Meanwhile, the Asia-focused firm, headquartered in Singapore and led by Jenny Lee and Jixun Foo, will concentrate on China, Southeast Asia, and South Asia. The yuan-denominated funds will continue operating independently under the Jiyuan brand. (Yahoo Finance)

GGV Capital, with $9.2 billion in assets under management, has previously supported major Chinese technology companies such as Alibaba, ByteDance, Xiaomi, and Didi Global, as well as US companies like Airbnb and Slack.

This strategic move comes in response to the increasingly complex investment landscape and regulatory challenges, particularly with the US government’s recent restrictions on investments in certain Chinese firms. It reflects a broader trend among venture capital firms as they adapt to changing geopolitical realities.

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