The company has new plans for its venture capital Jinqiu Ventures, renaming and changing the investment ratio.
ByteDance changed its plan regarding the launch of the VC brand Jinqiu Venture Capital (Chinese: 锦秋创投), changing the name to “Jinqiu” and adjusting its investment proportion.
ByteDance had planned to launch a new venture capital brand named Jinqiu Ventures in the second half of last year, and the latter will raise funds independently. A person close to ByteDance’s investment department said the company would invest $20 million in the new venture. However, the amount can be readjusted if the company is considering a larger investment.
Zhou Shouzhi, CEO of TikTok Global, had implied that the company was unable to provide additional support for the new fund besides funding.
The change is crucial because issuing companies must now reconsider their decisions. Previously, they benefited from the endorsement effect and resource tilt of ByteDance’s activities, including Feishu and TikTok. This cooperation will become more difficult with change.
Currently, the fund has completed registrations for WeChat official account and other platforms. And he continues to promote new projects.
The investment arm’s decision to lay off sparked a public outcry in January. ByteDance replied that “the company has conducted an analysis of its business and decided to strengthen the business orientation, reduce investment with weak synergy, disperse personnel to other business areas, and strengthen the strategic research function with the company”.
Through internal communication, Zhou pointed out that there are problems in matching the department’s strategic goals with those of the company for the next five years.