Evonik Venture Capital invests in two leading Chinese funds

German specialty chemical company Evonik is extending its corporate venture capital  activities in China with investments into GRC SinoGreen Fund V and Richland VC Fund III. These two leading funds focus on  advanced materials, high-end manufacturing equipment, digital  transformation, and green technologies. They will strengthen Evonik’s activities in the region and will provide access to attractive technologies and business opportunities. Parties have  agreed to not disclose the amount of the investment.  

“China is one of the world’s fastest growing innovation leaders and therefore an attractive market for venture capital,” said Bernhard Mohr, head of Evonik Venture Capital. “By partnering with funds that have a deep understanding of the innovation ecosystem in China and broad networks with local start-ups, Evonik is able to gain rapid access to new technologies and attractive business opportunities at an early stage.”  

The Chinese venture capital fund GRC invests in material-focused green technology companies in China. GRC SinoGreen Fund V intends to focus on areas of circular economy, synthetic biology,  3D printing, battery materials and carbon materials. The investment marks a follow-up to Evonik’s participation in 2015 in the third fund of GRC (GRC SinoGreen Fund III).  

Richland Capital invests in advanced materials and pays attention to new technologies, such as advanced manufacturing equipment and digital technology. Therefore, it has set its investments to focus  on the value chain of materials, equipment and data, targeting  strategic industries such as pan-semiconductor, e-mobility,  digital manufacturing, 5G and alternative energy. 

Evonik is a well-known corporate venture capital partner in China with a local presence since 2018 and several funds and direct investments over the years. Evonik’s Venture Capital arm plays a  strategic role in Evonik’s goal to become a best-in-class global specialty  chemicals company, by investing in innovative technologies and disruptive business models as well as enabling digital technologies.  

“The investments demonstrate our commitment to strengthen innovation capabilities and complement our open innovation strategy in China,” said Fuliang Xia, president of Evonik Greater China. “The focus of the two funds is highly relevant to our growth drivers in China. It thus provides great opportunities to facilitate local product development and business model innovation.”