Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

VC funds backed by companies to continue to boom

By Jing Shuiyu | China Daily | Updated: 2017-07-17 09:09
Share
Share - WeChat

Corporate venture capital or CVC funds will continue to boom in China, industry observers said.

CVC funds are different from traditional venture capital or VC firms. While the latter are by and large driven by the goal of maximizing returns on their short-term investments, CVC funds such as Intel Capital, Google Ventures and Alibaba-backed Blue Pool Capital accord priority to strategic, long-term objectives.

That's because financing new ventures that promise innovations could help them discover synergies with existing businesses.

In the fourth quarter of last year, CVC funds invested $536 million in 14 startups, seven of them tech startups.

CVC funds are on the rise because the product cycles have been getting shorter. So, big businesses need to be nimble to adapt to the latest industry trends and consider outsourcing some of their research and development work to startups, said Tian Xuan, assistant dean and professor at the PBC School of Finance, Tsinghua University.

"Think about it. Is it possible that Coca-Cola could keep competitive power over decades by relying on only one single product? No," said Wang Yue, partner of Beijing-based incubator cyzone.cn. "What will replace smartphones in the future? Even handset companies may not know. So, it's imperative for large corporations to find ways to innovate faster."

CVC funds could help in this context. In recent years, Chinese CVC funds such as those of Tencent Holdings Ltd, Alibaba, JD.com and Baidu Inc, have gathered momentum in terms of investments.

Chinese CVC funds invested a record $4.25 billion yuan in the third quarter of 2015. That was partly due to ride-sharing company Didi Chuxing's F round financing of $3 billion.

Tian said CVC funds have two advantages. One is that it is easy to exit the startups they back via an IPO, mergers or acquisitions. The other is that startups backed by CVC funds tend to have high valuations, which could make exits profitable.

"CVC funds allow startups to test ideas on an immense scale of the parent. The long-term funds also enable startups to take the trial-and-error path to success," he said. "Many startups go through 99 failures and may succeed at the next attempt. A traditional VC firm can't wait that long.

"But CVC funds have a relatively weak independence, as they are controlled by parent companies and have to follow the strategic plan."

Han Jingyan contributed to the story.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 爆乳女仆高潮在线观看| 又粗又硬又黄又爽的免费视频| 国产又大又硬又粗| 国产麻豆天美果冻无码视频| 国产精品午夜小视频观看| 国产香蕉视频在线| 国产精品国产午夜免费福利看| 国产又色又爽在线观看| 免费无码黄十八禁网站在线观看| 亚洲欧美18v中文字幕高清| 久久精品国产亚洲av成人| 一本色道久久88综合日韩精品| 404款禁用软件onlyyou| 野花影院在线直播视频| 男人扒开女人下身添免费| 最近中文字幕视频高清| 小情侣高清国产在线播放| 国产精品亚洲精品日韩已方| 国产AV一区二区三区无码野战 | 在打烊后仅剩两人接档泡面番| 国产日韩精品一区二区在线观看播放| 四虎地址8848最新章节| 五月开心播播网| 久久久久综合国产| 久久综合丝袜长腿丝袜| 久久精品99久久香蕉国产色戒| 久久国产香蕉视频| 久久无码人妻一区二区三区| 久久精品欧美日韩精品| 久久精品国产久精国产| 中文字幕日韩高清| www亚洲精品少妇裸乳一区二区| 99国产精品免费观看视频| 伊人中文字幕在线观看| 国产亚洲国产bv网站在线| 黄色一级黄色片| 黄瓜视频在线播放| tube欧美巨大| 91成人午夜性a一级毛片| 77777_亚洲午夜久久多人| 99re热久久|