France-based automotive parts supplier Valeo has provided an undisclosed sum for the Sino French Innovation Fund, launched by private equity firm Cathay Capital to invest in startups across France, China and the US.
The fund aims to raise €250m ($281m) for its final close, after securing a combined $112m cornerstone investment from China Development Bank, a financial institution owned by China’s government, and French state-owned investment fund Bpifrance in July 2014.
Valeo’s partnership with Cathay will help the fund identify startups in the smart transportation and connected car industries.
The fund will also seek out companies in the internet, mobile, big data, internet of things, advertising and marketing, software, cloud, security, gaming, media, social network and business-to-business applications sectors.
Cathay expects to invest in 12 to 18 startups, making individual commitments between $5.6m and $28m.
Cathay concurrently provided approximately $560,000 to establish the Cathay Global PE Research Fund. The fund, co-created by Cathay and several business schools, will support case studies into private equity investments conducted at those schools.
Jacques Aschenbroich, CEO of Valeo, said: “This partnership with Cathay will reinforce our ability to cooperate with innovative startups on three essential geographies for the automotive market, in China, in Europe and in the US, in a context where the automobile is becoming more and more digital and connected.”