Cathay Capital launches a Sino-French Innovation Fund with a target size of €200M to €250M
Cathay Capital announces the forthcoming creation and implementation of the Sino-French Innovation Fund, a new cross-border investment vehicle active across France, China and the United States and dedicated to venture capital financing in innovative startups.
The Sino-French Innovation Fund will invest in a total of 12 to 18 innovative startups, chiefly based in France and China. The fund will adopt an investment strategy designed to boost the development of these companies across each targeted geographic zone by fostering dialogue and partnerships between them.
The clearly defined objective of this strategy is to help portfolio companies to connect with one another from the outset through a global ecosystem (Europe / Asia / United States) in order to enhance their vision and accelerate their international growth. The fund will target investment in digital startups linked to the internet, including mobile, big data, ‘the Internet of Things’, advertising, digital marketing, software, cloud technologies, security, gaming, media, social networks, BtoB applications etc.
The fund aims to raise 200 to 250 million Euros, of which 100 to 150 million will come from third-party investors beyond cornerstone investors Bpifrance and CDB Capital. The fund will partner with and finance digital start-ups, mainly in France and China and to a lesser extent in the United States. The amounts to be invested in each startup will range between 5 million and 25 million Euros. With the establishment of this new fund, Cathay Capital plans to launch a dedicated line of activity on this segment, by leveraging its global network for the benefit of the most innovative companies.
Nicolas Dufourcq, Managing Director of Bpifrance, declares: “This fund represents an important undertaking, especially given that French companies have an urgent need to develop their activities across as wide a market as possible: this potential is something offered by the United States, but also today by China. In the same way, France can constitute a strategic bridge for Chinese and American companies looking to locate in Europe. This new fund will participate in perpetuating the dynamics initiated by the first two vehicles, which is essential to the creation of jobs in today’s economy.”
Huaibang Hu, President of China Development Bank, comments: “The launch of this new fund is a new milestone in the cooperation between France and China for private-equity and the promotion of innovative companies. It is also a logical development, as we are very satisified with the results of the two initial Sino-French funds managed by Cathay Capital and supported by Bpifrance and China Development Bank: the Sino-French fund for SME launched in September 2012 and the Sino-French (Midcap) Fund created in June 2014.”
Mingpo Cai, President of Cathay Capital Private Equity, concludes: “The launch of this new Innovation fund will leverage our 8 years of experience in cross-border investment across China, Europe and the United States, where we have now been present for 3 years. Over recent years, Cathay Capital’s multicultural team has grown to include 40 professionals, including 8 Partners, spread across 3 continents with offices in Paris, Shanghai, Beijing, Munich and New York. The Cathay Capital team will be further strengthened in the context of this new fund launch, mainly by setting up a dedicated line of activity led by an experienced team, in order to better serve our entrepreneurs and fully deserve the confidence and trust of ours investors, including Bpifrance and CDB, to whom we express our warmest thanks.”
Source: Cathay Capital Press Release