China-headquartered technology conglomerate Kuang-Chi has formed an Israel-based corporate venturing unit that could eventually reach $300m in size.
Kuang-Chi is committing an initial $50m to Kuang-Chi GCI Fund & Incubator but intends to expand it to $300m in the next three years. It will combine startups incubated by Kuang-Chi in China with investments in early to mid-stage companies in Israel and across the world.
Founded in 2010, Kuang-Chi functions as an innovation group with offices in China, North America, Europe, Africa and Oceania. It has applied for more than 3,000 patents across technologies including metamaterials, photonics, satellite technology, aviation and robotics.
In addition to equity funding, the firm will also make its corporate resources available to portfolio companies, helping them with sales, marketing and technology, with collaboration and joint development also an option.
Israel-based investment firm Indigo Global Partners, already Kuang-Chi’s partner in Israel, will manage Kuang-Chi GCI Fund & Incubator activities in Israel.
Explaining the unit’s geographic focus, Kuang-Chi chairman Ruopeng Liu said: “Israel has unparalleled capabilities to offer the world.
“We intend to invest in the best local companies in the fields of biometrics, communications, robotics and augmented reality, and to take them to the next level commercially and technologically.”