• StepFun raised $180M Series B at $1.95B valuation in 2025.
• China Q1 2026 tech funding totaled $21B, with 35% to AI.
• StepFun IPO eyes $2.8B valuation, 45% above Series B.

Beijing AI startup StepFun unwinds Cayman Islands entities to pursue a mainland China IPO targeting 20 billion yuan ($2.8 billion USD) valuation, sources told Reuters on April 13, 2026. Executives notified investors this week. The restructuring follows China Securities Regulatory Commission (CSRC) rules from 2023.

StepFun builds large language models for finance and healthcare. The firm used variable interest entity (VIE) structures common in Chinese tech firms.

StepFun Series B Round

StepFun raised 1.3 billion yuan ($180 million USD) in Series B funding in 2025, Financial Times reported. Tencent Holdings and Hillhouse Capital led the round at 14 billion yuan ($1.95 billion USD) valuation.

David Li, partner at Matrix Partners China, said, "StepFun's models rival GPT-4 and support an A-share listing."

The Step-1.5B model has 1.5 billion parameters and matches GPT-3.5 performance. StepFun plans a Q3 2026 listing on the Shanghai STAR Market.

Peers Follow Offshore Unwind Trend

StepFun follows ByteDance and Shein in dismantling offshore structures. Beijing curbed VIEs from 2023. Bloomberg reported 23 AI startups restructured in Q1 2026.

Sarah Chen, CB Insights analyst, said, "Domestic IPOs offer 25-40% higher valuations than U.S. listings amid delisting risks."

China tech funding reached 150 billion yuan ($21 billion USD) in Q1 2026, per Preqin. AI took 35% of that total, with state funds favoring local listings.

CSRC Approvals Speed Tech Listings

The CSRC approved 12 tech IPOs in 2026 year-to-date. Chair Wu Qing stressed AI self-reliance at a March forum. StepFun shifts to a wholly foreign-owned enterprise.

Michael Zhang, managing director at Qiming Venture Partners, said, "VIE unwinds enable 20-30% premiums on A-shares over Hong Kong listings."

StepFun holds 500 million yuan ($70 million USD) in cash. Revenue hit 300 million yuan ($42 million USD) in 2025. Projections show 1 billion yuan ($140 million USD) by 2027. Clients include Bank of China and ICBC.

StepFun IPO Valuation at $2.8 Billion USD

Analysts project a 20 billion yuan ($2.8 billion USD) IPO valuation, up 45% from Series B. Moonshot AI listed at 25x revenue multiples on STAR Market.

The Shanghai Composite Index rose 0.8% on April 13, 2026. The tech sub-index gained 1.2%. StepFun's offering could attract 50 billion yuan ($7 billion USD) in orders.

Global AI venture deals moved to Asia. China VC volume rose 18% year-over-year, per Preqin Q1 data.

StepFun Models Top Domestic Benchmarks

StepFun's Step-V2 scores 85% on Chinese benchmarks, exceeding Baidu's Ernie in Mandarin tasks. The firm employs 450 engineers in Beijing and Shenzhen.

IPO funds will expand data centers to 10,000 GPUs by 2028. Nvidia H100 chips form the supply chain core.

Rival Zhipu AI filed for IPO last month. The top five Chinese AI firms plan $10 billion USD in combined 2026 listings.

StepFun IPO Timeline and Risks

CSRC reviews average six months. StepFun seeks August 2026 approval. U.S. chip tariffs pose risks to Nvidia supplies.

Approval could lift valuation to 30 billion yuan ($4.2 billion USD). Delays may cut it 25%. The next CSRC review occurs May 15, 2026. StepFun advances preparations amid supportive markets.