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: 卡一卡二卡三精品| 国内精品一战二战| 五月天婷婷在线视频国产在线| 精品毛片免费看| 国产欧美va欧美va香蕉在线 | 精品一区二区视频在线观看| 国产成人yy免费视频| 99久久免费只有精品国产| 无码不卡中文字幕av| 亚洲videos| 波多野结衣制服诱惑| 啦啦啦中文在线观看| 黑人巨大精品欧美一区二区| 国产超碰人人爽人人做人人添| 一级日本高清视频免费观看| 日韩福利电影网| 亚洲日韩中文字幕一区| 福利一区二区三区视频在线观看| 国产亚洲美女精品久久久| 无遮挡1000部拍拍拍免费凤凰| 天天躁夜夜躁狠狠躁2021| 中文字幕第6页| 日韩精品有码在线三上悠亚| 亚洲欧洲高清有无| 看看屋在线看看电影| 四虎精品视频在线永久免费观看| 91在线你懂的| 国产精品网站在线观看免费传媒| www.米奇777.com| 成人网站免费看黄a站视频| 久草视频在线免费| 欧美人善交videosg| 亚洲综合成人网| 精品久久久久久中文字幕人妻最新| 国产三级日产三级韩国三级韩级| 国产人与动zozo| 绿巨人app入口| 国产日韩精品一区二区在线观看 | 欧美videos在线观看| 亚洲第一极品精品无码久久| 精品久久亚洲中文无码|