3C AGI Partners, a venture firm from former SenseTime executive Esther Wong, has launched a new US$100 million fund dedicated to artificial intelligence. Backed by the prominent Hong Kong-based family office VMS Group, the fund will strategically target foundational AI infrastructure. This initiative signals a significant shift in investment focus towards the essential hardware powering the next wave of AI innovation.
A Strategic Focus on Foundational AI
The new fund adopts a "picks and shovels" philosophy, concentrating on core components of the AI ecosystem. This includes critical hardware like specialized chips, servers, and the buildout of advanced data centers. By focusing on this AI plumbing, the firm aims to capitalize on the fundamental technologies that enable the entire industry's growth.
Founder Esther Wong stated the fund will avoid the AI application space, which she views as overvalued and saturated. This deliberate move reflects a belief that long-term value lies in the underlying infrastructure rather than fleeting software trends. The strategy is designed to avoid market volatility and focus on more durable, capital-intensive investments.
Experienced Leadership and Powerful Backing
At the helm is Esther Wong, whose career blends Wall Street acumen with deep AI industry expertise. After two decades at firms like J.P. Morgan, she helped AI giant SenseTime raise over $5 billion. This dual experience provides the fund with a unique perspective on navigating the complexities of deep-tech investing.
The fund's primary backer is VMS Group, a multi-family office managing over $4 billion for some of Hong Kong's wealthiest families. While VMS has not disclosed its specific commitment, existing investors are continuing their support for the new vehicle. This backing provides significant financial credibility and access to a powerful network of influential investors.
A Global Mandate Amid Geopolitical Shifts
In a notable pivot, the new vehicle will employ a "US Plus" mandate, expanding its investment horizon beyond the United States. This approach will target promising startups in North America and other global technology hubs. The strategy is a direct response to rising geopolitical tensions, allowing the firm to diversify its portfolio and mitigate regional risks.
This global diversification is well-suited for deep-tech companies developing specialized hardware and next-generation data centers. Such ventures often require larger, long-term financing rounds that can benefit from a geographically diverse investor base. The "US Plus" strategy positions the fund to support these capital-intensive projects on a global scale.
Proven Momentum and Early Success
The fund has already shown strong momentum, securing US$50 million in a first close last November. It is targeting a full US$100 million by March, reflecting strong investor confidence in its leadership and focused thesis. The fund's size allows for a selective approach to partnering with both startups and limited partners.
Capital from an earlier 2023 fund has established a promising track record in AI infrastructure. The portfolio includes investments in innovative AI chipmakers Cerebras Systems and Groq. It also features Synchron, a pioneering brain-computer interface company, showcasing a commitment to cutting-edge deep technology.
The launch of 3C AGI Partners' new fund is a calculated move within the evolving technology investment landscape. Its sharp focus on foundational AI hardware, combined with a strategic global mandate, positions it to capitalize on long-term structural growth. This initiative highlights the shifting flow of capital towards deep-tech and underscores revitalized confidence in Asia's private markets.