XPeng leads investment in $200 million fund focused on ‘frontier’ tech

A new Xpeng P7 vehicle is revealed in the Xpeng Motors flagship shop in a searching mall. Xpeng P7 is a person of the two preferred products of Xpeng motors.

Zhang Peng | LightRocket | Getty Visuals

China’s XPeng said Thursday it led an investment into a new $200 million fund focused on backing electric autos and “frontier technologies” commence-ups.

The fund, named Rockets Cash, also counts a selection of large-profile undertaking capital players between the investors such as IDG Funds, eGarden, Sequoia China, 5Y Funds and GGV Funds.

Rockets Cash will concentrate on “venture and development stage investments in Clever EV marketplace value chain, thoroughly clean electrical power, and frontier know-how locations.”

XPeng did not expand on what “frontier know-how” would incorporate, but China’s federal government has discovered numerous areas that tumble less than this umbrella, together with synthetic intelligence and semiconductors.

The most recent fund arrives as the electric powered motor vehicle industry is expected to proceed its growth. Industry investigate company Gartner forecasts 6 million electrical cars will be transported this 12 months as opposed to 4 million in 2021.

But world monetary markets have also noticed huge volatility with Chinese technologies stocks in distinct getting a hammering, however they have staged a comeback in the very last two times.

Bing Yuan, controlling associate of Rockets Capital, mentioned the closing of the fund is a “testimony that in the continually evolving investment market, the lower carbon economic climate and technological innovation-driven development are the consensus investment developments.”

Rockets Funds will operate independently from XPeng. The electric car organization claimed the fund will leverage XPeng’s “market knowledge and methods” and “incubate technological innovation.”

The fund has presently “entered into agreements” to devote in companies, XPeng stated with out disclosing any names.