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Kylie Jenner’s vodka seltzer deal signals China VC investor’s global push

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Kylie Jenner’s vodka seltzer deal signals China VC investor’s global push

Sequoia Capital’s former China unit has accelerated its push for global deals, investing in celebrity-backed start-ups such as Kylie Jenner’s Vodka seltzer company, as it struggles to deploy its $9bn cash pile in a sluggish domestic market and tightening US controls.

HongShan, which split off last year from one of the world’s largest venture capital firms amid rising geopolitical tensions, has ratcheted up its hunt for deals in Europe and North Asia after facing shrinking options in China.

The Chinese investment group has done deals with celebrity-backed consumer groups such as Jenner’s Sprinter, one of the US reality TV star’s newest business ventures, as well as French women’s fashion brand Destree, co-founded by Géraldine Guyot, the wife of LVMH founder’s son Alexandre Arnault, according to multiple people familiar with the matter.

The global push comes as HongShan, led by billionaire Neil Shen, widely considered China’s top tech investor, has faced frustration from some limited partners over the pace of dealmaking for its $9bn US fund, after raising the money two years ago.

HongShan has both dollar and renminbi funds, which are managed by overlapping teams, but they are increasingly having to pursue separate strategies. The group, which closed a fresh Rmb18bn fund in March, is free to use this money to invest in hot areas in Chinese tech such as robotics and generative artificial intelligence.

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“They are deploying the US fund but very slowly,” one limited partner told the Financial Times.

HongShan has invested only 10 to 20 per cent of its two later-stage funds, both sized at $3.6bn, according to two people familiar with the matter. This gives it four to five more years to invest the remaining sum.

The group has been quicker in deploying its earlier stage funds, the seed and venture funds, which are $480mn and $1.3bn, respectively — and have between 20 and 35 per cent invested, these people added. 

The lack of high-growth domestic investment options has been exacerbated by Washington’s move to tighten scrutiny of American investment in Chinese high-end technology.

In August, President Joe Biden signed an executive order to ban US investment in Chinese technology with potential dual-use military application, such as semiconductors, quantum computers and AI.

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Chinese funds have already pre-emptively been carving out their US LPs from deals that involve high-tech investments, according to industry insiders, leaving them with fewer promising sectors to back as less sensitive consumer companies have been hit hard from the weak economy.

HongShan has instead been using its USD funds to double down on already well-established Chinese start-ups, including building up its position in ByteDance, while buying existing shares in the fast-growing Instagram-like start-up Xiaohongshu.

In general, LPs are keen to see early deployment because it gives more time for the companies to grow in value and for the funds to recoup their investment through IPOs or mergers. LPs typically still have to pay management fees on capital that has not yet been called.

Other US backers of HongShan are more sanguine about the pace of dealmaking. “I’ve been an investor with Neil and the team from the beginning. They are one of the best investments that we’ve made,” said one, adding that HongShan’s push for global deals was a “natural evolution” for a firm of its size and track record.

HongShan is focusing more on Northern Asia and Europe after facing difficulties with US tech deals. This year it was asked to dramatically reduce its stake in HeyGen, a leading AI video company that originated in Shenzhen before migrating to Los Angeles, over national security concerns about Chinese VCs being a significant shareholder, the Financial Times reported.

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In recent months HongShan has opened a London office, hiring former Goldman Sachs banker Taro Niggemann, who is charged with hunting for internet and consumer-related deals in the UK and Europe.

The move puts it in more direct competition with its former partner Sequoia, which also has an office in London focused on European start-up investments.

HongShan said: “Since our inception in 2005, we’ve built a diverse portfolio spanning Japan, Korea, Southeast Asia, Australia and Europe, proving our strategy thrives across global markets in addition to our portfolios in China.”

The Chinese investment group is hunting for consumer brands in the west, which it can help grow in Asia, as it looks to build on the success of its 2021 investment in Ami Paris, which helped the French designer brand expand in China.

HongShan participated in a $430mn fundraising round earlier this year in UK online bank Monzo, alongside CapitalG, Google’s venture fund GV and Tencent. It also invested this year in the German-based Green Energy Origin, a battery materials start-up.

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It also holds a roughly 9 per cent stake in fast-fashion company Shein, which is targeting a London listing if it receives approval from regulators in Beijing, according to two people familiar with the matter. 

HongShan also has plans to open a Tokyo office, according to two people familiar with the matter, although one cautioned it was still in the early stages. HongShan declined to comment on its Tokyo office plan.

Its push into Japan follows a rush of other Chinese funds building a presence there, including rival PE group Hillhouse and the Jack Ma-backed Yunfeng, which have both built a presence in the country in recent months for real estate deals.

In Japan, HongShan has invested in construction management software start-up ANDPAD, AI contract management start-up LegalForce and lithium-ion battery venture AESC, according to one person with direct knowledge of the matter. 

Additional reporting by Ryan McMorrow in Beijing

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After 2 failed votes, Mike Johnson unveils new plan to extend key U.S. spy powers

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After 2 failed votes, Mike Johnson unveils new plan to extend key U.S. spy powers

Speaker of the House Mike Johnson, R-La., takes questions at a news conference at the Capitol on Tuesday.

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Speaker Mike Johnson, R.-La., is forging ahead with his latest proposal to renew a key American spy power. His bill, revealed Thursday, is largely unchanged from a previous plan which failed in a series of overnight votes earlier this month.

The program at center of the debate, Section 702 of the Foreign Intelligence Surveillance Act (FISA), is set to expire on April 30.

FISA 702 allows U.S. intelligence agencies to intercept the electronic communications of foreign nationals located outside of the United States. Some of the nearly 350,000 foreign targets whose communications are collected under the provision are in touch with Americans, whose calls, texts and emails could end up in the trove of information available to the federal government for review.

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For almost two decades, privacy-minded lawmakers from both parties have sought to require specific court approval before federal law enforcement can conduct a targeted review of an American’s information gathered through the program. The lack of any such warrant requirement helped sink an effort last week to extend the program for 18 months, as well as a separate vote on a five-year renewal. 

Trump officials, like those in past administrations, have argued that such a warrant requirement would overburden law enforcement and endanger national security. Johnson’s latest proposal would reauthorize the program for three years, but does not include a warrant requirement. Instead, the bill calls for the FBI to submit monthly explanations for reviews of Americans’ information to an oversight official as well as criminal penalties for willful abuse, among other tweaks.

“I am willing to risk the giving up of my Rights and Privileges as a Citizen for our Great Military and Country,” the president wrote on Truth Social last week, advocating for the program to be extended without changes. “I have spoken with many in our Military who say FISA is necessary in order to protect our Troops overseas, as well as our people here at home, from the threat of Foreign Terror Attacks. It has already prevented MANY such Attacks, and it is very important that it remain in full force and effect.”

Glenn Gerstell, who served as general counsel at the National Security Agency during the Obama and first Trump administration, says Johnson’s reforms look like an attempt to find a middle ground.

“There’s not a lot of really substantive changes to the statute, but some gestures are made to people who are worried about privacy and civil liberties,” Gerstell said. “It seems like a pretty reasonable compromise that is going to be satisfactory to the national security agencies and yet at the same time represents some gesture to the privacy advocates.”

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“This is not a reform bill and it’s not a compromise,” Elizabeth Goitein, a privacy advocate and senior director of the Liberty and National Security Program at the Brennan Center for Justice at New York University, wrote on X. “It’s a straight reauthorization with eight pages of words that serve no serious purpose other than to try to convince members that it’s NOT a straight reauthorization.”

A bipartisan reform deal is still out of reach

Connecticut Rep. Jim Himes, the top Democrat on the House Intelligence committee, told NPR on Wednesday, before the release of Johnson’s new proposal, that lawmakers were working on a bipartisan solution. He said House Minority Leader Hakeem Jeffries, D-N.Y., was in touch with Johnson on the issue.

“There’s a lot of work being done here,” Himes said. “We’re sort of working out a process that will be inclusive rather than exclusive.” Himes said he was negotiating with Rep. Jamie Raskin, a Maryland Democrat and constitutional law scholar, on a reform proposal they hoped could preserve and reform the program — reauthorizing it with bipartisan support.

But Johnson’s new bill appears to fall short of the inclusive approach Himes hoped for.

NPR obtained a memo written by Raskin to his colleagues urging them to oppose the bill, which he said “continues the disastrous policy of trusting the FBI to self-police and self-report its abuses of Section 702 and backdoor searches of Americans’ data.”

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“FBI agents can still collect, search, and review Americans’ communications without any review from a judge,” Raskin wrote.

FBI agents must receive annual training on FISA and are generally barred from searching for information about people in the U.S. if the goal of the search is to investigate general criminal activity, rather than find foreign intelligence information, and those searches need approval from a supervisor or an attorney. 

Republican hardliners — who sunk Johnson’s last reauthorization attempt — also don’t all appear to be on board for Johnson’s latest revision. Rep. Scott Perry of Pennsylvania, a past chair of the Freedom Caucus, said “we’re not there yet” in a video he shared to X on Thursday.

“I didn’t take an oath to defend FISA, I didn’t take an oath to defend the intelligence community,” Perry said. “We can’t have them spying on American citizens and, when they do, there has to be accountability and I haven’t seen any that I’m satisfied with yet.”

The House Rules committee meets Monday morning, the first step toward advancing the renewal bill toward a vote.

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Trump Says Israel and Lebanon Agree to Extend Cease-Fire by Three Weeks

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Trump Says Israel and Lebanon Agree to Extend Cease-Fire by Three Weeks

President Trump announced a three-week extension of a cease-fire between Israel and Lebanon that had been set to expire in a few days, after hosting a meeting between Israeli and Lebanese diplomats at the White House on Thursday.

Hezbollah, the Iranian-backed militant group that has been attacking Israel from southern Lebanon, did not have representatives at the meeting and did not immediately comment on the announcement. The prime minister of Israel and the president of Lebanon also did not comment.

A successful peace agreement would hinge upon Hezbollah halting attacks, which Lebanon’s government has little power to enforce because it does not control the militia. Lebanon’s military has mostly stayed out of the fighting and is not at war with Israel.

The cease-fire, which was scheduled to end on April 26, would last until May 17 if it takes effect as Mr. Trump described it. Before the cease-fire was brokered last week, nearly 2,300 people were killed in Lebanon and 13 in Israel. Since then, the number of Israeli airstrikes and Hezbollah attacks have been dramatically reduced, though the two sides have continued exchanging fire.

The Lebanese Ambassador to the United States, Nada Hamadeh, credited Mr. Trump for extending the cease-fire, saying that “with your help and support, we can make Lebanon great again.” Mr. Trump replied, “I like that phrase, it’s a good phrase.”

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Asked about the potential of a lasting peace agreement between Israel and Lebanon, Mr. Trump said that “I think there’s a great chance. They are friends about the same things and they are enemies on the same things.”

But Lebanon and Israel have periodically been at war since Israel’s founding in 1948. Israel has invaded Lebanon for the fifth time since 1978, incursions that have destabilized the country and the delicate balance of power between Muslim, Christian and Druze communities.

In the hours before the president’s announcement on social media, Israel and Hezbollah were trading attacks in southern Lebanon, testing the existing cease-fire.

Mr. Trump said the meeting at the White House had been attended by high-ranking U.S. officials, including Vice President JD Vance, Secretary of State Marco Rubio and the U.S. ambassadors to Israel and Lebanon.

Earlier on Thursday, an Israeli strike near the southern Lebanese city of Nabatieh killed three people, according to Lebanon’s health ministry. Hezbollah claimed three separate attacks on Israeli troops who are occupying southern Lebanon, though none were wounded or killed.

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Hezbollah set off the latest round of fighting last month by attacking Israel soon after the start of the U.S.-Israeli bombing campaign in Iran. Israel responded to Hezbollah’s attacks by launching airstrikes across Lebanon and widening a ground invasion of the country’s south.

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U.S. soldier charged with suspected Polymarket insider trading over Maduro raid

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U.S. soldier charged with suspected Polymarket insider trading over Maduro raid

Smoke rises from Port of La Guaira in Venezuela on Jan. 3, 2026 after U.S. forces seized the country’s president, Nicolas Maduro and his wife.

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Federal prosecutors on Thursday unsealed an indictment against a U.S. Army soldier, accusing him of using his insider knowledge of the clandestine military operation to capture Venezuelan leader Nicolás Maduro in January to reap more than $400,000 in profits on the popular prediction market site Polymarket.

The Justice Department says Gannon Ken Van Dyke, 38, who was stationed at Fort Bragg, in North Carolina, was part of the team that planned and carried out the predawn raid in Caracas earlier this year that resulted in the apprehension of Maduro.

The Department of Justice and the Commodity Futures Trading Commission filed the actions against Van Dyke, the first time U.S. officials have leveled criminal charges against someone over prediction market wagers.

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According to the indictment, Van Dyke now faces counts of wire fraud, commodities fraud, misusing non-public government information and other charges.

Trading under numerous usernames including “Burdensome-Mix,” Van Dyke allegedly traded about $32,000 on the arrest of Maduro, resulting in profits exceeding $400,000.

“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Those entrusted to safeguard our nation’s secrets have a duty to protect them and our armed service members, and not to use that information for personal financial gain.”

Van Dyke’s defense lawyer is not yet publicly known. Polymarket did not return a request for comment.

The charges against Van Dyke come at a sensitive time for the prediction market industry, which has been growing exponentially, despite calls in Washington and among state leaders for the sites to be reined in.

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Van Dyke is the first to be charged in the U.S. for suspected Polymarket insider trading, but Israeli authorities in February arrested several people and charged two on suspicion of using classified information to place bets about military operations in Iran on Polymarket.

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