AsianFin--Sequoia Capital’s former China unit, now known as HongShan, has raised a 18 billion yuan ($2.5 billion) fund despite a challenging fundraising environment affecting its rivals.

This new fund, closed in March, represents the largest fundraising effort by a privately owned venture capital firm in China over the past year.

HongShan, which split from Sequoia Capital last year due to geopolitical issues, is poised to invest in technology startups across the country.

The fund has garnered support from the Hangzhou city government and several private and state-owned insurance companies.