Taiwan-based manufacturing services provider Foxconn has partnered venture capital group IDG Capital to form a RMB10 ($1.5bn) investment fund that will focus on transport technology, Bloomberg reported today.
Foxconn and IDG will supply 10% of the capital as well as experts who will run the fund. They have been in talks with state-backed funds, financial institutions and private investors for the past few months concerning the remainder, according to an investment document.
The as-yet unnamed fund, which was announced in a public presentation earlier today, will target a range of technologies including autonomous driving software and advanced batteries, and will invest in companies based in China, Japan and the US.
The fund is expected to be active for seven years, and the firms said in the presentation: “Our fund will encompass early and mature-stage financing, combining VC and [private equity] models.”
Smart electric car developer Nio, which raised $87m in a March 2017 round co-led by internet groups Tencent and Baidu and backed by IDG Capital, was cited as a potential investment target, along with Sensetime, the artificial intelligence software provider that closed a $410m round in July this year that also included IDG Capital.
Foxconn’s past investments include electric vehicle developer Future Mobility, bicycle sharing service Mobike and ride hailing platform Didi Chuxing.