Better late than never.
Kathy Xu, the veteran investor behind Today Capital, has been notably absent from recent headlines. However, Bloomberg reported that this Wednesday, amid fierce bidding from seven institutional investors for ByteDance’s secondary shares, Xu’s firm emerged victorious with a winning bid of nearly $300 million.
This transaction pegs ByteDance’s valuation at approximately $480 billion, a figure confirmed by sources close to ByteDance’s investor circle.
Xu and ByteDance founder Zhang Yiming had discussed funding years ago, but she hesitated at the time due to Zhang’s proposed $7 billion financing terms. “I realized too late—I missed that opportunity,” Xu later admitted, citing her failure to back Zhang as one of her biggest regrets.
Though delayed, Xu has finally secured a seat on the ByteDance train—one of the few remaining chances for private market investors to gain exposure to the tech giant.
**Investors Scramble for ByteDance Shares—Kathy Xu Joins the Fray**
Just how sought-after are ByteDance’s secondary shares?
According to Bloomberg, the latest share sale attracted multiple bidders, with up to seven participants driving the final price significantly higher. The shares, originally offered by early investor BOC Group at around $200 million (implying a $360 billion valuation), ultimately fetched nearly $300 million, lifting ByteDance’s implied valuation to $480 billion (over RMB 3.4 trillion).
This time, Xu got her wish.
ByteDance’s secondary shares have long been a hot commodity in the private market, with premiums being the norm since 2021. Demand has surged, and prices have skyrocketed, leaving latecomers like Today Capital scrambling for a ticket via secondary transactions.
Sources familiar with the matter noted that the intense bidding was partly due to the rare chance to acquire a sizable stake in ByteDance in one go. Clearly, the company’s shares have become a market “hard currency.”
While this single transaction doesn’t fully reflect ByteDance’s overall valuation, the implied RMB 3.4 trillion figure is still staggering.
**Making Up for Lost Time: The Missed Chance with Zhang Yiming**
Xu’s latest move revives an old story.
Years ago, when she first met Zhang Yiming to discuss funding, he quoted a $7 billion valuation. “I was shocked—for an early-stage VC, that was way too high,” Xu recalled. Ultimately, she passed on the deal.
What followed was ByteDance’s meteoric rise into a global internet titan, leaving many VC investors who missed out kicking themselves.
“Truthfully, I just didn’t get it,” Xu admitted in a rare moment of reflection during a talk with Nanjing University alumni. “As they say, you can’t earn what’s beyond your understanding.”
She later grasped the content-and-advertising model while studying winner patterns, particularly after Facebook founder Mark Zuckerberg’s insight that future content distribution would shift from search to feed-based formats—where even ads blend seamlessly into engaging content streams.
“But by the time I understood, Douyin’s valuation had already quintupled. I missed the boat,” Xu lamented.
A similar scenario played out with PDD Holdings Inc. An intern at Today Capital once compiled all of Colin Huang’s speeches, yet the firm still passed on investing. Years later, Xu revisited PDD, evolving from skepticism to conviction—eventually building a position in the public market.
**The Timing Question**
Nearly everyone is waiting for ByteDance’s IPO moment.
The company’s cap table is a who’s-who of global investors, including SIG, Source Code Capital, DST Global, Sequoia China, Hillhouse, Carlyle, General Atlantic, Coatue, SoftBank Vision Fund, KKR, Yunfeng Capital, and Primavera Capital. A successful listing would be a landmark event for venture capital.
More notably, ByteDance’s rising valuation in this deal reflects a broader reassessment of Chinese tech assets.
As observed this year, international capital—once hesitant—is now displaying “FOMO” (fear of missing out) toward China’s tech resurgence. ByteDance and other internet giants are riding the AI wave, scripting a new chapter in tech innovation.
After all the twists and turns, the best assets still lie in China.