Cycle Capital Management and Qingdao City Construction Investment Group have held the first close the Qingdao Chengtou Haisi Cycle Equity Investment Fund. The RMB 600 million ($116 million) fund, launched in 2014, will invest in growth-stage industrial technology companies located in China, Canada and elsewhere in North America. It has already made its debut investment, deploying RMB 50 million to Haier-Ririshun Lejia, an affiliate of Qingdao-based consumer electronics and home appliances company Haier. Cycle is a Montréal-based clean technology venture capital firm.
Photo: Andrée-Lise Méthot, founder and managing partner, Cycle Capital Management.
Qingdao Chengtou Haisi Cycle Equity Investment Fund closes 600 Million RMB industrial hi-tech Fund
BEIJING, CHINA – December 8, 2017 – Qingdao City Construction Investment Group (Chengtou) and Cycle Capital Management, Canada’s leading cleantech venture capital platform, announced today the first closing of the Qingdao Chengtou Haisi Cycle Equity Investment Fund (Qingdao Haisi Cycle Fund), in the presence of the Honorable Catherine McKenna, Canada’s Minister of Environment and Climate Change and Chen Liang, Director General of Foreign Economic Cooperation Office at the Ministry of Environmental Protection.
A New Industrial Investor in the global venture capital ecosystem
The Qingdao Haisi Cycle Fund, a 600 M RMB industrial hi-tech venture capital fund, will play an important role in the global funding ecosystem by investing growth stage capital in industrial technology startups in China, Canada and North America, and leveraging China and Canada’s forces. As a new investment vehicle, the Qingdao Haisi Cycle Fund therefore embodies a collaboration between two major players at the forefront of developing innovative, technology-enabled solutions to major global challenges such as industry dislocations and climate change.
“The environment and the economy go together. We know that private investments, like the one announced today, will drive the transition to the low carbon economy and are important in helping accelerate clean growth,” said the Honorable Catherine McKenna, Minister of Environment and Climate Change of the Government of Canada.
“Through this joint endeavor with Chengtou, Cycle Capital aims at fostering the development of high potential innovative businesses across China, Canada and North America. By building a bridge, we will be able to provide better access to capital and strategic resources to the startups – key elements to enable the emergence of disruptive technologies by flagship businesses that are competitive in the global market,” said Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital Management. “From a Canadian and North American perspective, this partnership will provide interesting opportunities for Cycle Capital’s portfolio companies wishing to expand and invest in China.
The Qingdao Haisi Cycle Fund is already operating and has made its first investment of 50M RMB in Haier-Ririshun Lejia, which provides an integrated technology-enabled, delivery platform to both service providers and the user community, with efficient and customized solutions. Haier-Ririshun Lejia is an affiliate of Haier, a technological leader in consumer electronics and appliances based in Qingdao. The Qingdao Haisi Cycle Fund is actively evaluating a rich pipeline of investment opportunities and welcomes inquiries and collaboration with entrepreneurs and co-investors.
About Qingdao City Construction Investment Group
Established in 2008, Qingdao City Construction Investment Group (Chengtou) is wholly owned by Qingdao municipal government and has total assets of 150 B RMB. In order to serve Qingdao’s strategic goal of developing a livable, auspicious and energetic metropolis, Chengtou engages in infrastructure construction, land and property development and investment, solar power generation, healthcare and environmental protection industries, financial services, international capital management, basic materials trading and education via 128 tertiary subsidiaries.
Chengtou plays a significant role in the economic development of Qingdao and has been innovative to improve market-oriented modes of operation in order to turn government resources into enterprises assets, enterprises assets into social capital, and social capital into enterprises capital. It has introduced a number of well-known state-owned key enterprises and municipal supporting units to accelerate the integration and development of land resources enhance land value and achieve win-win development.
About Cycle Capital Management
Cycle Capital Management (CCM) is an impact investor and the most active cleantech venture capital firm in Canada with almost $400M AUM (assets under management). With offices in Montreal, Toronto and Qingdao, and a presence in New York and Seattle, CCM invests in companies at the development and commercialization stages that commercializes clean technologies striving to reduce greenhouse gas emissions, optimizing resource use and improving process efficiency throughout North America.
CCM regroups seasoned investment professionals, strategic advisors and industrial partners with in-depth knowledge of the sector. The firm has a special relationship with its strategic partners, notably Brookfield Renewable Energy, Rio Tinto, Cascades, Group M3, Lonza, Gaz Métro, Systemex Énergies, Aluminerie Alouette and Hydro-Québec. For more information on Cycle Capital Management, visit: cyclecapital.com.
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