Amidst the tense relationship between the United States and China, it has been revealed by informed sources that Eight Roads Ventures, a venture capital fund supported by the Johnson family, billionaires under Fidelity Investments, is planning to sell its corporate assets in mainland China.
According to Bloomberg, informed sources have disclosed that Eight Roads Ventures, controlled by Abigail Johnson’s family, has been an early investor in the Chinese internet industry. Earlier this year, they began seeking to sell their stakes in about 40 Chinese tech companies. Due to the sensitive nature of the matter, the sources requested anonymity.
These companies were valued at up to $1 billion at their peak, but are currently being sold at discounts ranging from 60% to 80%. Negotiations are reportedly ongoing, with the outcome still uncertain. The stakes include shares in the autonomous driving company Pony AI Inc., which are still held by Eight Roads as they are subject to lock-up agreements.
The heightened geopolitical tensions following the U.S. restrictions on investments in Chinese high-tech sectors in January have been cited as a key factor behind these moves. Subsequently, President Trump’s escalation of tariffs on Chinese goods led to retaliatory measures from Beijing, further escalating trade tensions.
A spokesperson for Eight Roads Ventures stated in a statement to Bloomberg that in response to the constantly evolving regulatory environment, the company decided last year to no longer actively seek new equity investments in Chinese tech companies. The company added that a smaller team will continue to manage its existing stakes while focusing on investments in the Chinese healthcare industry, but declined to comment further.
According to information on the Eight Roads Ventures official website, the company holds stakes in approximately 130 companies in mainland China, with a total value exceeding $1.1 billion. Founded by the Johnson family in 1969, this fund has invested in around 500 companies in markets including India and Japan globally. The assets managed by Eight Roads Ventures exceed $11 billion.
This divestment marks the complete withdrawal of the company from China. Sources revealed that about a year ago, Eight Roads Ventures laid off over a dozen employees from its Chinese tech team, retaining only a few to oversee its existing equity investments. The last disclosed Chinese tech investment transaction by Eight Roads Ventures was in 2023.
As indicated on the company’s website, out of roughly 30 employees in mainland China, over 20 are focused on the healthcare sector, while the remaining 4 are focused on technology.
The withdrawal of Eight Roads Ventures from mainland China highlights the challenges faced by American investors in the country. Exiting investments through public markets has been strictly controlled, as many startups even when seeking overseas listings require approval from Chinese securities regulators.
Investors interested in Eight Roads Ventures’ assets reportedly include Chinese private equity and venture capital funds focusing on technology, as well as a Hong Kong-listed financial company.
Following the separation of Eight Roads Ventures from Fidelity International in 2019, the fund continues to rely on Fidelity’s fundraising platform network for capital, with no plans to open separate channels for fundraising.