Japan-headquartered chemicals and advanced materials producer Asahi Kasei has formed a corporate venture capital (CVC) unit in China, The Chemical Daily has reported.
Founded in 1922 as Asahi Fabric, Asahi Kasei initially concentrated on viscose rayon and synthetic ammonia production before adding areas including environment, home construction and healthcare to its business lines.
The corporate already runs an investment vehicle, Asahi Kasei Ventures, which was formed in its home country in 2008 before pivoting its focus to US and Europe-based deals three years later.
Asahi Kasei Ventures has invested in more than 30 companies and its parent has acquired portfolio companies such as ultraviolet LED manufacturer Crystal IS and SenseAir, a developer of gas detection sensor technology.
Founder and general manager Shun Ohama will run the fund from the Chinese city of Shanghai, targeting early-stage developers of internet-of-things (IoT) and automotive technologies in China.
Asahi Kasei Ventures China also made a limited partner (LP) commitment to China-based growth-stage industrial investment firm Richland Capital’s third fund in December 2020.
Paint and coatings group Nippon Paint’s Singaporean subsidiary, Nipsea Holdings, is also among the fund’s LPs, as are chemicals producer Solvay’s corporate venturing vehicle, Solvay Ventures, and Redbud Capital, an offshoot of Tsinghua University’s investment firm, Tsinghua Holdings.
Takashi Mukuno, Asahi Kasei’s China-based general manager, said: “China is a country where new businesses are springing up quickly, and we intend to keep up with the pace – the establishment of a CVC arm is of great significance, not only for new business development but also for information gathering.” (Translated from Japanese by Global Corporate Venturing)
