Evonik Venture Capital with new China Investment

The focus of the funds is “highly relevant to our growth drivers in China, demonstrating our commitment to strengthen innovation capabilities and complement our open innovation strategy,” Evonik said, adding that the investments will strengthen the company’s access to China’s fast-growing innovation ecosystem, boost its activities in the region and provide access to attractive technologies and business opportunities.

The GRC SinoGreen Fund V invests in material-focused green technology companies based, with an emphasis on the circular economy, synthetic biology, 3D printing, battery materials and carbon materials. This is Evonik’s second investment with GRC, following a 2015 participation in its third fund.

 Richland VC Fund III also invests in advanced materials with a view to new technologies such as advanced manufacturing equipment and digitalization.  Here, the focus is on the value chain of materials, equipment and data, targeting strategic industries such as pan-semiconductor, e-mobility, digital manufacturing, 5G and alternative energy.

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

Evonik has been on the ground in China’s corporate venture capital market since 2018, participating in several funds and direct investments. The company said its venture capital arm focuses its investments on innovative technologies and disruptive business models as well as enabling digital technologies.

Author: Dede Williams, Freelance Journalist