Monolith Management is seeking about $500 million for a new venture fund focused on artificial intelligence companies in China, according to people familiar with the fundraising effort. The venture firm, which has staff in Hong Kong and mainland China, is aiming to complete the raise by the end of 2026, although the final size could change as discussions with prospective limited partners continue. The planned vehicle would represent a significant expansion from Monolith Venture Fund II, which closed at $289 million in 2025 and was also focused on China-oriented technology investments.
A Larger Bet on Chinese AI
The new fund would deepen Monolith’s exposure to a rapidly expanding Chinese AI ecosystem spanning foundation models, infrastructure, hardware, applications, and robotics. Monolith describes its venture strategy as research-driven and focused on technology-led business innovation, while previous reporting on its second dollar-denominated fund said its early-stage AI interests included applications, model infrastructure, hardware, and embodied intelligence. Raising roughly half a billion dollars would therefore give the firm substantially more capital to pursue larger or more numerous investments across a market where computing, model development, and robotics are attracting increasing investor attention.
Portfolio Anchored by Moonshot AI
Monolith is already associated with several prominent Chinese technology companies, including Moonshot AI, the developer behind the Kimi family of large language models. Its portfolio also includes robotic pool-cleaning company Beatbot and intelligent robotics platform D-Robotics, reflecting an investment approach that extends beyond generative AI software into embodied and hardware-enabled intelligence. Moonshot has become one of China’s closely watched AI developers, making Monolith’s exposure to the company a central reference point as the investment firm approaches investors for its next fund.
Building on Earlier Fundraising
The proposed fund follows Monolith’s $289 million second US dollar-denominated venture fund, which reached its hard cap in 2025 after a fundraising process that reportedly lasted about three months. That vehicle was larger than its $264 million predecessor and attracted commitments from a mix of existing and new limited partners, including US endowments, Asian family offices, funds of funds, and an Asian sovereign wealth fund. Monolith was established in 2021 by Xi Cao and Timothy Wang and has since expanded across venture capital and other investment strategies while concentrating heavily on technology.
A Complicated Capital Environment
The latest fundraising effort comes as China-focused investment managers attempt to secure fresh US dollar commitments against a mixed backdrop for cross-border capital. Strong activity in Hong Kong’s IPO market and continued advances by mainland AI companies are creating potential exit opportunities and renewing interest in selected technology assets, but geopolitical and regulatory uncertainty remains an important consideration for international investors. Those competing forces could influence both the composition of Monolith’s limited-partner base and whether the firm ultimately reaches its reported $500 million target by year-end.
If completed near its targeted size, Monolith’s new fund would mark a notable increase in the amount of capital the firm can deploy into Chinese artificial intelligence and related technologies. The raise would also underline the continuing ability of established China-focused managers to pursue sizable dollar funds despite a more selective international fundraising environment, particularly when they can point to exposure to high-profile AI and robotics companies. For now, however, the vehicle remains in the fundraising stage, and its final size, investor mix, and closing timetable have not been publicly confirmed by Monolith.
Source: Bloomberg