Chinese smart household appliance producer Dreame Technology has launched a corporate venture capital arm with a RMB11bn ($1.54bn) target.
Formed in 2023, Empyrean Venture will target AI and robotics technology developers. The initiative will consist of two portions: a RMB10bn ($1.4bn) growth-stage strategic fund and a RMB1bn ($140m) early to mid-stage incubation vehicle.
The incubation fund reached a first close with capital coming from Dreame as well as unnamed Chinese local governments, state-owned enterprises, industrial firms and family offices.
The state-owned investor in the incubation fund is reportedly Guosheng Fund, part of Xiamen city government, according to TMTPost, citing a person privy to the matter.
Dreame is an anchor investor for the larger fund, in partnership with an unnamed Chinese local government. It has raised most of its capital, Empyrean partner Ming Lei told 36Kr.
The same source told TMTPost that the state-owned investor in this growth-stage fund is an unnamed industrial fund based in the eastern part of the Yangtze River Delta.
Founded in 2017, Dreame produces cordless hoovers, hairdryers, lawnmowers and other household items. The company, valued at RMB20bn ($2.8bn), counts consumer electronics producer Xiaomi among its investors.
While US-China tensions are hindering western capital from entering China, some corporates remain bullish in the market. Tencent Investment, part of Chinese internet company Tencent, is pivoting its focus to back healthcare startups.
In recent months, Xiaomi raised $1.4bn for a semiconductor fund, Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund Partnership, and German carmaker Porsche launched a China-based fund of undisclosed size called CICC Porsche (Shanghai) Venture Capital Investment Partnership.
