Nestlé is the main backer of the consumer investment firm's latest fund, which has a $150m target for its final close.

Packaged food producer Nestlé has contributed to the first close of a fund for China-based, consumer-focused investment firm Tiantu Capital with a $150m target for its close, DealStreetAsia reported yesterday.

Nestlé is the cornerstone investor for the fund, and the deal represents its first commitment to a China-based venture capital fund. The other limited partners include unnamed listed companies, family trusts and individuals, according to a WeChat post by Tiantu Capital.

Founded in 2002, Tiantu concentrates on investments in consumer product developers. Its portfolio includes Zuoyebang, the online education provider that raised $750m in June this year, and Aihuishou, the electronics recycler that secured $500m a year earlier.

The firm has not disclosed how much it has so far raised for its latest fund, but it will invest roughly $3m to $20m per deal and is targeting series A and B-stage deals for companies in the consumer health, food and beverage, and skincare and cosmetics sectors.

Tiantu Capital managing partner Pan Pan was quoted by DealStreetAsia as saying: “The commitment from Nestlé will further synergise the resources between venture capital and industry investment, providing Tiantu Capital with the industry expertise of more international visions.”

Robert Lavine

Robert Lavine is special features editor for Global Venturing.