As a limited partner of the fund, Henkel said it will strengthen its access to the fast-growing start-up scene in China, which has become a global hotspot for material science in recent years. Specifically, the investment will provide the German firm with access to more than 1,000 start-ups each year.

“China without a doubt is not only a key market for our Adhesive Technologies business but is also a global hub for disruptive innovations and new business models in material science,”said Paolo Bavaj, head of corporate venturing at Henkel Adhesive Technologies. 

“Through the partnership with Henkel, Richland can better help Chinese start-ups accelerate their growth by leveraging Henkel’s innovative capabilities and global supply chain. On the other hand, Richland can support Henkel to build collaborative partnership with local innovative startups and to identify new growth opportunities in the region,” added Zhebo Ding, managing partner of Richland Capital.

Through its corporate venture capital arm Henkel Tech Ventures, Henkel Adhesive Technologies has in past years committed to invest through a couple of advanced material-focused venture capital funds globally.

In June this year, Henkel invested in ioTech, a UK-based start-up with an R&D footprint in Israel that has developed a disruptive continuous laser-assisted deposition (CLAD) technology, allowing the further miniaturization of various electronics applications. The nozzle-free laser jetting system enables high-resolution printing for up to six different materials at the same time, including polymers, bio-based materials, metals and ceramics.

“We are scouting for novel and scalable technologies complementing our existing portfolio in adhesives, sealants and functional coatings”, Bavaj said. “Electronics is among our core markets where we are supporting our broad customer base to strive with innovative solutions enabling higher performances, new functionalities and improved efficiency. We are convinced that ioTech’s technology will perfectly complement our existing materials portfolio, drive the further miniaturization in the industry and provide value to our customers. We also aim, in collaboration with ioTech, to unlock further opportunities for innovative mass-manufacturing applications across Henkel´s large customer base.” 

Henkel now has access to more than 3,000 start-ups per year with a regional focus on North America, Europe, Israel and China.

Author: Elaine Burridge, Freelance Journalist