China's Favorite Silicon Valley VC Gets Another $330 Million

Vipshop at the NYSE
Eric Shen (2nd L), Chairman and CEO of Vipshop, rings the opening bell at the New York Stock Exchange on March 23, 2012. DCM benefited from their investment in Vipshop. Photographer: Shen Hong/Xinhua Press via Corbis

DCM is not the first name that comes to mind for Silicon Valley entrepreneurs looking to raise venture capital. While DCM hasn't scored access to the same blockbuster deals in the U.S. that have made billions for other firms on Sand Hill Road, Asia is a different story.

DCM has made up for misses in the U.S. with some big bets in Asia. The firm made an early investment in Kakao, which makes South Korea's most popular messaging app . All eyes are on the startup after Facebook agreed to pay $19 billion for WhatsApp.

China has been especially strong for DCM, which has an office in Beijing. Vipshop Holdings, a Guangzhou, China-based flash-sale e-commerce company backed by DCM, has ridden a rocket ship of growth since the company went public in March 2012. Just in the last year, shares are up more than 500 percent. DCM also invested in the Craigslist of China, called, which has more than tripled in value since its IPO last year. Others include E-Commerce China Dangdang, the country's biggest online bookseller, and Renren, the Chinese social network.

The 18-year-old firm said today that it's raised $330 million to invest in technology companies. This fund is smaller than preceding ones, which were $400 million and $500 million. Two of the firm's Valley-based general partners, Carl Amdahl and co-founder Dixon Doll, are stepping back.

"They won't make new investments as they transition into a different phase of their life," said Jason Krikorian, a general partner who joined the firm in 2010 after founding Sling Media.

DCM isn't giving up on the U.S., though. Despite high valuations attached to many consumer Internet startups, the firm is looking for companies working in hot new areas of technology, including wearables , digital media and the so-called Internet of Things, Krikorian said.