ByteDance’s valuation story has taken another decisive turn following plans by Venture capital firm HSG, formerly known as Sequoia Capital China, to prepare a continuation fund that could value the social media giant at as much as US$370 billion.
This move underscores ByteDance’s financial momentum and investors’ enduring appetite for scale technology assets.
Sources familiar with the matter say HSG’s planned continuation vehicle would acquire a portion of its ByteDance stake at a valuation range of US$350 billion to US$370 billion.
Continuation funds are commonly used by private equity and venture firms to shift mature holdings from older funds into new structures, offering existing investors the choice to exit or roll over their positions.
ByteDance is expected to be the centrepiece of the new vehicle.
HSG holds just over 11% of the company, making it one of ByteDance’s largest external shareholders, however only a small slice of that stake is likely to be transferred.
Nevertheless, the transaction could rank among the largest continuation fund deals globally if only a fraction of the holding is included.
The proposed valuation sits above the levels implied by ByteDance’s recent employee and investor share buybacks, which hovered slightly above US$330 billion, yet remains below the US$480 billion valuation attached to a November secondary-market stake sale.
That spread highlights how ByteDance’s value continues to be actively debated — and steadily pushed upward — across private markets.
ByteDance’s revenues surged throughout 2025, with the company outperforming Meta’s Facebook and Instagram businesses in both the first and second quarters.
This outperformance cemented the company’s position as the world’s largest social media company by sales.
Growth continued through the rest of the year, with annual profits forecast by people close to the business to approach US$48 billion.
Beyond advertising and short-form video, ByteDance has also emerged as a dominant force in China’s consumer artificial intelligence market.
Its chatbot, Doubao, has claimed the largest share of monthly active users nationwide, reinforcing the company’s ability to extend its reach beyond social media into new technology frontiers.
The continuation fund comes as ByteDance continues to manage geopolitical scrutiny, including the prolonged process around separating TikTok’s U.S. operations.
However, sources indicate this uncertainty has not dampened limited partner interest, with investors expecting a standard continuation process and clear options on liquidity.
HSG’s relationship with ByteDance runs deep.
The firm first backed the company in 2014, when ByteDance was valued at just US$500 million and focused primarily on its news aggregation app Toutiao.
Since then, HSG has participated in multiple funding rounds and remained closely involved.
Its founder and Managing Partner Neil Shen continues to sit on ByteDance’s board alongside senior global investors and company executives.
The move also reflects HSG’s evolution.
Since formally separating from Sequoia’s U.S. business in 2024, the firm has broadened its scope beyond China, managing around US$55 billion in assets across venture, growth, buyout, infrastructure and public equity strategies.
Recent activity, including a take-private deal for Italian luxury sneaker brand Golden Goose, signals its increasingly global ambitions.
For ByteDance, the proposed valuation range sends a clear message: despite regulatory headwinds and market volatility, the company’s scale, profitability and innovation engine continue to command premium pricing.
For HSG, it is a chance to crystallise long-term gains while keeping skin in one of the world’s most valuable private technology companies.
As one investor close to the process said: “This isn’t just about recycling capital — it’s about reaffirming belief in a business that keeps redefining what global tech leadership looks like.”
