DeepSeek Secures New Funding Progress: Institutions Compete for Last Entry Ticket, IPO Expected Next Year

DeepSeek's Liang Wenfeng. Image generated by AI

Written by: Gu Lingyu

Edited by: Su Yang

On October 22, media reports indicated that DeepSeek's latest round of financing has concluded. Tencent Technology learned from several participants in this financing round that it is nearing completion but has not fully closed, with a few institutions still vying for the last entry opportunity.

Some institutional representatives stated that they will continue to meet with Liang Wenfeng for discussions. The specific financial terms and list of investors may still change.

Tencent Technology learned that DeepSeek launched its second round of financing in mid-July, initially targeting 50 billion yuan. By September, it had sent out a term sheet (TS) to some investors, planning to conclude by the end of September. Subsequently, the financing target was raised, and it is now approaching 100 billion yuan. Despite the expanded financing scale, the pre-investment valuation remains around 500 billion yuan.

01 Financing Scale Doubles, Industrial Capital Accelerates Entry

According to information obtained by Tencent Technology, the new and old shareholders intend to invest amounts that are approximately equal, with CATL being one of the largest investors in this round. Existing shareholders from the first round, including IDG Capital, Lisi Capital, and Shixiang Capital, are also continuing their participation. New investors include Sequoia Capital, SMIC Capital, CPE Yuanfeng, Legend Capital, Geely, and also a telecom operator and a well-known internet company.

Among the new institutions, many have industrial backgrounds. Sequoia Capital was initiated by a joint investment team from Zhaoyi Innovation, Legend Capital is an investment platform under Lenovo Holdings, and Geely is a complete automobile enterprise. It is generally believed that Liang Wenfeng prefers industrial capital in the selection process for the second round of financing to strengthen upstream and downstream collaboration.

In terms of funding direction, previous media reports indicated that DeepSeek is increasing its investment in AI data center construction and developing more open-source models aimed at domestic and international markets. Currently, the company has not publicly disclosed the specific uses and allocation ratios of this round of financing.

A person involved in both rounds of transactions told Tencent Technology that this round of financing is primarily led by state-owned and industrial investors. Compared to the previous round, another noteworthy change is that "capital with a Zhejiang background has increased."

A representative from a new industrial investor in this round told Tencent Technology that the progress of DeepSeek's first round of financing was too rapid, and they did not have the opportunity for communication; however, by the second round, the market was already eager to participate. He stated that investment opportunities in such projects are inherently scarce. However, at the same time, although DeepSeek's financing amount is large, the transaction structure and terms are relatively conventional, and the complexity of operations is not equivalent to that of M&A projects that require splitting or restructuring. In his view, compared to early-stage projects, the difficulty of judging investments in DeepSeek is lower, "because there is a consensus."

In April 2026, DeepSeek launched its first external financing since its establishment, completing the transaction by the end of June. According to previous information obtained by Tencent Technology, the first round was approximately 51 billion yuan, with Liang Wenfeng personally contributing about 20 billion yuan.

If the second round is completed at around 100 billion yuan, the total scale of DeepSeek's two rounds of financing will reach approximately 150 billion yuan. The interval between the first round's completion and the second round's nearing closure is only about four months.

02 IPO Preparation Progressing Alongside Financing

Tencent Technology learned that DeepSeek has chosen CITIC Securities to assist with its IPO preparations, intending to list on the STAR Market, with the earliest completion expected in 2027.

Several participants in DeepSeek's financing expressed optimism about the company's IPO prospects, generally expecting it to complete the listing between 2027 and 2028.

Public reports also indicate that DeepSeek is advancing related preparations. Caijing previously reported that the company has been in contact with multiple investment banks since late August, planning to submit its IPO application as early as the end of 2026, with a goal to list in 2027. Other foreign media cited informed sources stating that DeepSeek is accelerating its IPO timeline, aiming for an early listing in Shanghai next year.

As financing expands, DeepSeek's commercialization scale is also growing. Media reported in September that DeepSeek's annualized revenue run rate has reached 1 billion USD. Tencent Technology learned from informed sources that this figure is still rapidly increasing.

In the second round of financing, DeepSeek also held an investor communication meeting. During this communication, Liang Wenfeng answered questions related to due diligence and IPO issues. For institutions participating in this round of financing, model capabilities, commercialization progress, and IPO expectations collectively form the basis for investment judgment.

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