China’s Harvest Capital has secured the first close of its third advanced manufacturing fund. Separately, Mech-Mind Robotics, a developer of 3D cameras and AI-powered software for industrial robots, has raised nearly 500 million yuan ($69.9 million) in new financing.
Harvest Capital holds first close of $350m advanced manufacturing fund
China’s Harvest Capital has held the first close of its third advanced manufacturing fund at 1 billion yuan ($139.8 million). The vehicle is targeting up to 2.5 billion yuan ($349.5 million) in the final close.
With 4 billion yuan ($559.2 million) in assets under management (AUM), Beijing-based Harvest Capital plans to deploy the new fund’s dry powder into “high-quality domestic technology companies” developing in “an ever-expanding industry”. Such companies should preferably be “at a turning point of development, with clear market demand for its maturing technologies,” said the firm in a Wednesday (Aug 27) announcement.
The fund is set to be more than double the size of its predecessor fund, which closed at 1.2 billion yuan ($167.8 million) in May 2023.
For the new fund, Harvest Capital said it secured commitments from cornerstone limited partners (LPs) including Xiamen C&D Emerging Industry Equity Investment and Beijing Equity Investment Development Fund, both of which are funds-of-funds (FOFs) based in China.
Other LPs include CICC Capital, the private equity (PE) investment arm of China International Capital Corporation (CICC), Xiamen Jin Yuan Investment Group, China Capital Management, and multiple local government guidance funds and investment platforms, said the firm.
The first close came after Harvest Capital celebrated the mainland Chinese listings of two of its heavily invested companies, namely Sidea Semiconductor Equipment, a semiconductor equipment maker, and Wintech Nano, which offers semiconductor chip analysis and testing solutions.
Sidea went public on Shenzhen’s startup board ChiNext in March and raised 545.4 million yuan ($76.2 million) in its initial public offering (IPO). In the same month, Wintech Nano raised nearly 300 million yuan ($41.9 million) in its IPO on the Nasdaq-style STAR Market in Shanghai.
Founded in 2014, Harvest Capital has built a portfolio of companies operating across new-generation IT, semiconductors, automobile, new energy, electronic components, new materials, life sciences. Its signature deals were made into companies like Chinese database services provider Dameng and Dalicap Technology, which manufactures electronic components.
Industrial robotics solutions provider Mech-Mind Robotics raises nearly $70m
China’s Mech-Mind Robotics, which specialises in developing industrial 3D cameras and AI-powered software for robots, has raised nearly 500 million yuan ($69.9 million) in new financing to accelerate the tech upgrades and commercialisation of its full-stack AI technology.
A group of investment firms participated in the deal, such as China Growth Capital, Tianjin Venture Capital, Haihe River Industry Fund, and CICC Porsche Fund, a joint fund between China’s CICC and German carmaker Porsche AG, according to the latest WeChat post by Mech-Mind.
Shenzhen-listed Zhongshan Broad-Ocean Motor, a Chinese manufacturer of electric motors for construction, automobile, and household use, also invested in Mech-Mind, with plans to explore collaborations with the startup.
Mech-Mind plans to invest the new financing to upgrade its full-stack, general-purpose robotic “Eye-Brain-Hand” AI technology, which enables industrial robots to understand natural language instructions, differentiate various real-world objects, and execute complex tasks.
The latest funding will also allow Mech-Mind to expand its product line, speed up commercialisation, improve client services, and step up its operations globally.
Founded in 2016, the startup has operations across multiple countries and regions including China, the US, Japan, South Korea, Europe, and Southeast Asia.
The new investment comes about four years after the completion of its previous big-ticket funding round. In September 2021, Mech-Mind secured almost 1 billion yuan ($139.8 million) in a Series C extension round led by Meituan and IDG Capital. HongShan and Source Code Capital participated.
