Prominent investor Jim Breyer along with Chinese firm IDG Capital Partners have raised what many consider to be the largest venture capital fund in China. This new venture was formed despite concerns that the Chinese tech market is already overcrowded, and it would be a struggle for late-stage startups to get a traction.

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Breyer and IDG Capital announced that they have been able to raise $1 billion which they intend to invest in growth-stage companies based in China as well as other countries in the region. Moreover, the new fund will diversify its investments and will not only focus on technology. Breyer told Bloomberg that there are plans are to delve into the market for health care, media, and energy.

The new fund established by Breyer and IDG Capital is the seventh largest China investment fund sponsored by the two venture capitalists since 2005. The first five funds were established through IDG Capital and Breyer's old firm Accel Partners, which is based in the United States. The last two ventures were a collaboration between IDG Capital and Breyer's new firm, Breyer Capital.

The new $1 billion fund called IDG Capital Fund III almost doubles the value of the last fund which was established at $586 million. That last fund was smaller since it was created to focus on early-stage startups, while the new one targets mature and more established companies.

Of the 10 largest global venture capital funding rounds made this year, six involve Chinese companies. According to Market Watch, among these companies are Didi Chuxing Technology, and Meituan-Dianping.

Tagschina, IDG, IDG Capital, Breyer, Breyer Capital, China Fund