Richland Capital secures LP commitment from Germany’s Henkel for Fund III

The Forbidden City in Beijing, China. Photo: Getty Images Pro via DealStreetAsia

Henkel Tech Ventures, the corporate venture capital arm of Germany-based Henkel’s innovation unit Henkel Adhesive Technologies, has made a limited partner (LP) commitment in the Chinese investment firm Richland Capital’s third venture fund — Richland Capital Fund III.

Financial details of the transaction were not disclosed.

The partnership will give Henkel better access to the fast-growing startup scene in China, a burgeoning market for material science.

“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 materials science,” said Adhesive Technologies head of corporate venturing Paolo Bava.

In a statement, Henkel Adhesive Technologies said it has been investing in advanced material-led funds and startups in China, as well as North America, Europe, and Israel. Henkel had backed UK-based ioTech in June and Israel’s sensor technology firm Feelit in January. 

Richland Capital, established in 2011 in Beijing, has been engaged in the growth-stage industrial technology sector. It primarily looks to invest in sectors including advanced materials, high-end manufacturing equipment, digital technologies, and digital businesses. 

The VC firm, which is said to be looking to raise a total of 800 million yuan ($124 million) for Fund III, had previously secured the first close of Fund III in July last year from leading groups like Belgian Solvay, the pint and coating manufacturer Nippon Paint’s parent company NIPSEA Group, and Tsinghua Asset Management’s funds of funds Redbud. 

And subsequently, it had also roped in marquee LPs such as Japanese global chemical consortium Asahi Kasei Corporation’s China branch and French global materials giant Saint-Gobin. 

With a target to bankroll niche segments like new materials, Fund III was flowing into a slew of projects comprising OLED material producer Lumilan, auto design startup Launch Design, and Runtai Chemical, among others. 

“Through the partnership with Henkel, Richland can better help Chinese startups 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,” says Richland Capital managing partner Dr. Zhebo Ding.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.