Tencent-Backer IDG Capital Sets Sights on $2 Billion Growth Fund

IDG Capital, an investment firm that has backed Tencent Holdings Ltd. and Coinbase Global Inc., is seeking to raise about $2 billion for a growth fund, according to people familiar with the matter.

The fund will invest in consumer technology and other consumer-focused firms in countries including China, the people said, requesting not to be named because the information is private. IDG kicked off fundraising about two months ago and is targeting a first close before the end of this year.

Hong Kong-based IDG joins a raft of China-focused fund managers attempting to raise dollars from global sovereign ...