On August 5, commercial inquiry platform TianYanCha.com showed that Tianjin Bytedance Management Consulting Co., Ltd., an investment company owned by Bytedance, was officially renamed Tianjin Bytedance Private Equity Fund Management Co., Ltd., leading to a hot debate in the venture capital community. Bytedance responded on Monday night that currently it had no plan to set up a private equity fund to raise capital.
Corporate registration data shows the business scope of the private equity fund company changed to private equity investment fund management and venture capital fund management services. The company also engages in equity investment, investment and asset management and other activities with private equity funds.
Bytedance began to get involved in investments as early as 2014. Since 2021, the number and volume of investments made by Bytedance have far surpassed those in previous years.
As of August 16, CVSource data shows that Bytedance has invested in more than 160 enterprises with a total investment amount of more than 25 billion yuan. IT Orange, a business information service platform, shows that Bytedance’s investment map involves as many as 17 different industries, the top three beingentertainment media, enterprise services and games.
According to the TianYanCha.com, Tianjin Bytedance Private Equity Fund Management Co., Ltd. was founded in March 2018 with a registered capital of 10 million yuan ($1.54 million). Zhang Yiming, founder of Bytedance, and Zhang Lidong, Chairman of Bytedance, were shareholders of the company until June this year, each holding 80% and 20% of the company’s shares.
People familiar with the matter said Bytedance has set up its financial investment team in the form of a pure fund, which is on a par with the strategic investment team, meaning that the company will also have to pay attention to financial returns while pursuing strategic returns, Jiemian reported.
Bytedance disclosed its financial situation in June this year. In 2020, its actual income was 236.6 billion yuan, up 111% year-on-year, and its gross profit increased 93% to 133 billion yuan.