SR Ventures Management Co., one of the earliest backers of the Chinese social commerce app Xiaohongshu, is raising about $350m for a new China-focused venture fund and is using its existing stake in the app, known internationally as RedNote, as the central pitch, according to a Bloomberg report on Tuesday citing people familiar with the matter.
Investors who back the new vehicle have been told they may gain exposure to RedNote shares through GSR’s existing fund, the people told Bloomberg.
The structure would also create a possible exit route for backers of the current GSR fund, which is more than a decade old and which currently holds the firm’s RedNote position. The fund-raising plans are described as preliminary and may change. A GSR spokesperson declined to comment.
RedNote is now marked in GSR’s books at roughly $50bn, a figure that anchors the entire pitch. That is a 61% increase on the $31bn implied valuation logged in a secondary transaction inside the same GSR vehicle in the first half of 2025, when shares of the fund changed hands and the position was disclosed in portfolio documents distributed in September.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The $50bn mark is consistent with a separate late-2025 Xiaohongshu secondary share sale, reported by Chinese outlet Pandaily, which valued the company at the same level.
