Nasdaq-listed software company CDC has agreed to set up a China corporate venturing fund in collaboration with a local city authority.
The memorandum of understanding with the government of Nanhai District, Foshan, a city located in south China’s Guangdong province will create a RMB600m ($89m) fund.
The Foshan Nanhai-CDC Technology and New Media Fund will focus on the region’s technology and digital media industries, including cloud computing, e-commerce, social network websites, third-generation mobile media, internet media and content and animation.
The fund will also be able to invest in US technology and new media companies.
Peter Yip, chief executive of CDC, will lead the fund’s investment committee and its advisory committee will be headed by Raymond Ch’ien, CDC’s chairman.
Peter Cuneo, former chief executive of US-based media group Marvel Entertainment, will also be one of the members on the advisory board.
CDC already has minority investments in companies, including a provider of 3G comics in Japan, a provider of cloud-based marketing automation software, a provider of cloud-based supply chain execution software and services, and a Korea-based developer of online games.