Evonik is extending its corporate venture capital activities in China with investments into GRC SinoGreen Fund V and Richland VC Fund III.
The investment underlines the importance of China as rapidly growing venture capital region
The two leading funds will strengthen Evonik’s access to China’s fast-growing innovation ecosystem
Evonik is extending its corporate venture capital activities in China with investments into GRC SinoGreen Fund V and Richland VC Fund III. The two leading funds focus on advanced materials, high-end manufacturing equipment, digital transformation, and green technologies. They will strengthen Evonik’s activities in the region and will provide access to attractive technologies and business opportunities. Parties have agreed to not disclose the amount of the investment.
“China is one of the world’s fastest growing innovation leaders and therefore an attractive market for venture capital,” said Bernhard Mohr, head of Evonik Venture Capital. “By partnering with funds that have deep understanding of the innovation ecosystem in China and broad networks with local start-ups, Evonik is able to gain rapid access to new technologies and attractive business opportunities at an early stage.”
The Chinese venture capital fund GRC invests in material-focused green technology companies in China. GRC SinoGreen Fund V intends to focus on areas of circular economy, synthetic biology, 3D printing, battery materials and carbon materials. The investment marks a follow-up to Evonik’s participation in 2015 in the third fund of GRC (GRC SinoGreen Fund III).
Richland Capital invests in advanced materials and pays attention to new technologies such as advanced manufacturing equipment and digital technology. Therefore, it has set its investments focus on the value chain of materials, equipment and data, targeting strategic industries such as pan-semiconductor, e-mobility, digital manufacturing, 5G and alternative energy.
“The investments demonstrate our commitment to strengthen innovation capabilities and complement our open innovation strategy in China,” commented Fuliang Xia, president of Evonik Greater China. “The focus of the two funds is highly relevant to our growth drivers in China. It thus provides great opportunities to facilitate local product development and business model innovation.”
Evonik is a well-known corporate venture capital partner in China with a local presence since 2018 and several fund and direct investments over the years. The Venture Capital arm plays a strategic role in Evonik’s goal to become a best-in-class specialty chemicals company, by investing in innovative technologies and disruptive business models as well as enabling digital technologies.
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