China-based venture capital firm Rockets Capital reached the first close of its inaugural fund today having raised over $200m in commitments from investors including electric vehicle (EV) manufacturer XPeng, which anchored the vehicle.
The fund will invest in early and growth-stage companies across the EV value chain, clean energy and frontier technology spaces. The Chinese government has described frontier technologies as including artificial intelligence, semiconductors, quantum technology, deep space and genomics.
Other limited partners in the maiden fund include venture capital firms IDG Capital, Sequoia Capital China, 5Y Capital, eGarden Ventures and GGV Capital.
Rockets Capital said it will have access to proprietary deal sourcing within the smart EV industry, and that it has already entered into agreements to invest in several companies. The firm also intends to leverage XPeng’s industry expertise and resources, though it will operate independently from the company.
China currently has one of the fastest growing EV markets in the world. It was valued at $124bn in 2021 and is expected to reach $779bn by 2027, according to research and consulting firm Mordor Intelligence.
Rockets Capital managing partner Bing Yuan said: “Our successful first closing, achieved amid the current global turmoil and challenging capital markets environment, is a strong endorsement of our differentiated positioning, investment strategy and execution capability by our investors.
“It is also a testimony that in the constantly evolving investment industry, the low carbon economy and technology-driven development are the consensus investment trends.”