Monolith Management has closed two new venture vehicles totaling $488 million, underscoring sustained investor appetite for artificial intelligence in China and beyond. The Beijing, Shanghai, and Hong Kong based firm said the dollar and renminbi funds were both significantly oversubscribed, yet the team capped commitments to maintain discipline. With the closes, Monolith’s assets under management now exceed 10 billion yuan, or roughly $1.4 billion.
Fundraising Overview
The firm did not break out individual sizes for the strategies, though a recent SEC filing shows “Monolith Venture Fund II,” its second flagship dollar fund, targeted $289 million as of October 3. Industry outlet China Venture Capital News reported the inaugural RMB fund finished around 1.4 billion yuan, implying the USD vehicle landed just under $300 million. Both funds executed a one-time final close rather than a staged process, reflecting what the firm characterized as concentrated demand from limited partners.
Investor Demand and Pace
According to Monolith, prospective LP interest reached about $630 million across the two funds before the cap held the line at $488 million. The firm noted strong re-ups from existing dollar LPs and swift allocation decisions from new backers, particularly amid a tighter global fundraising environment. Local media accounts add that Fund II moved from launch to confirmed allocations in roughly one month, with subsequent time consumed by administrative procedures.
Strategy and Focus
Both vehicles will extend Monolith’s focus on early-stage AI, backing agentic applications, model and infrastructure layers, and AI hardware, including embodied intelligence. The strategy continues a specialization that the firm has sharpened since inception, tilting its second fund generation even earlier and deeper into core AI stacks. Management emphasizes concentrated bets, speed to term sheet, and readiness to underwrite technical risk where commercialization pathways are visible.
Founding Team and Track Record
Monolith was founded in November 2021 by Managing Partners Cao Xi, formerly a partner at HongShan, and Tim Wang, previously a partner at Boyu Capital with public equities experience in technology and consumer sectors. Its debut dollar fund targeted $250 million and reportedly closed around $264 million in mid-2023, giving the platform a first cohort of positions to season. Notable investments include Moonshot AI, an emerging rival to DeepSeek, AI education player AITutor, household robotics brand Beatbot, and JOYIN, which develops embodied intelligence for home use.
Portfolio Momentum and RMB Pipeline
On the RMB side, Monolith participated in MetaX Integrated Circuit, a GPU developer that in October received approval to list on Shanghai’s STAR Market. The pipeline also features companies in AI infrastructure, robotics, and intelligent hardware, areas the firm believes can meet rigorous return thresholds while benefiting from valuation discipline. Management indicates the RMB fund operates as a currency-specific sleeve aligned with the same thesis and underwriting framework as the dollar fund.
Market Context and Valuation Backdrop
The closes arrive as global investors reassess Chinese technology valuations relative to peers in the United States and Europe. Monolith and its LPs point to persistent price gaps across large models, software applications, and embodied intelligence, creating entry points for early-stage specialists. A recovering Hong Kong new-issue market and accelerating technical progress among domestic AI champions have further supported the case for fresh capital formation.
Limited Partner Base and Institutionalization
Monolith notes renewed participation from existing overseas LPs and interest from new institutions in Europe, the Middle East, and Southeast Asia. The firm frames oversubscription and a controlled cap as choices intended to balance deployment capacity with return potential. The team also highlights incremental institutionalization, from one-close execution to repeatable diligence processes, as it scales while preserving a boutique decision speed.
Public Markets and Crossover Capability
Beyond venture, Monolith invests in global public equities with a focus on technology, software, life sciences, and consumer sectors. The platform also evaluates selective growth and late-stage private opportunities, creating latitude to support portfolio companies through later financings or consider pre-IPO entries. Management argues this crossover reach can improve signal quality, sharpen comps work, and inform exit planning across cycles.
With $488 million raised across dual-currency funds and AUM now above 10 billion yuan, Monolith has secured additional dry powder to press its AI thesis at the seed and early stages. The firm’s founders, Cao Xi and Tim Wang, are betting that disciplined fund sizing, faster deal execution, and valuation dispersion will translate into outperformance as the market normalizes. The next test will come from portfolio maturation, where listings such as MetaX’s STAR Market bid and continued financing traction for Moonshot AI and peers will calibrate the strategy’s results.
Source: China Venture Capital News