Early-stage venture capital firm Addor Capital that invests across a gamut of ‘new technology’ sectors is looking to foray beyond the boundaries of China.
“We have established an asset investment and management subsidiary in Hong Kong in bid to buy out valuable assets in foreign countries,” said its chairman Wenlu Ying in an interview with DealStreetAsia.
The firm recently closed a fund with a corpus of 5 billion yuan ($707 million) for its sub-funds, which comprise fund-of-funds (FoF), venture capital funds, regional funds, overseas merger & acquisition funds.
“To invest in new technology is Addor’s DNA. We have always been investing in companies with proprietary technologies and products. In addition, we also keep an eye on tech-led applications in industries,” said Ying.
Since its inception in 2014, Addor Capital has established six departments to execute investments in clean energy, healthcare, new materials, advanced manufacturing, consumption, culture, and TMT.
Going forward, exits for risk capital investors may become easier, said Ying. “The reforms of listing regulation for ChiNext board and STAR Market will pivot the national economy. Not only will new technologies and industries emerge with the help of capital, but also Chinese VCs’ exit will be much smoother.”
During the first half of 2020, two of Addor’s portfolio companies namely Wondux and Linkage Software were listed on the STAR Market. Additionally, as many as 10 companies are currently pending approval.
Edited excerpts of the interview:-