Since its inception in 2016, Nio Capital has raised five funds, including three US dollar funds and two RMB funds, with a total management scale of RMB 15 billion.
(Image credit: CnEVPost)
Nio Capital completed the second phase of its RMB fundraising, totaling over RMB 3 billion ($420 million), the firm announced today.
The newly raised funds will continue to be utilized for investments in the new energy vehicle (NEV) industry ecosystem, energy technology and energy transition and smart manufacturing, Nio Capital said.
The limited partners, or investors, of the second phase RMB fund include local government guidance funds, national funds, family offices and listed companies that have extensive presence in the NEV and components sectors, Nio Capital said.
Since its inception in 2016, Nio Capital has raised five funds, including three US dollar funds and two RMB funds, with a total management scale of RMB 15 billion.
Of the 20 portfolio companies in the first phase of Nio Capital’s RMB funds, five are already listed and quasi-listed, the firm said.
Nio Capital focused its investments in the early days on the NEV sector, which at the time did not have a broad consensus in venture capital circles, and invested in companies including CATL, Momenta, Pony.ai, Seyond, and Ronbay Technology.
Nio Capital’s website shows it has three managing partners — William Li, Zhu Yan, and Yu Ning — with Li being also the founder, chairman, and CEO of Nio (NYSE: NIO).
Li is at the top of the list of three managing partners, but he rarely represents Nio Capital in public, with Zhu running the firm’s main affairs.
Over the years, many have wondered about the relationship between Nio Capital and Nio, and a report by local media outlet 36kr today provides some answers.
When Nio Capital was founded, its core management had an open goal to use the funds to uncover great technologies and projects in the market, 36kr said.
For example, if Nio Capital invested in a parts company, it wouldn’t ask the company to only supply Nio, but would want it to provide services to a wider range of businesses, the report said.
A common misconception is that Nio’s reason for setting up this fund is to incorporate products and technology into its own supply chain, the report noted.
That’s not the case with Nio Capital, which is an independent investment fund with a market-based decision-making mechanism, 36kr’s report said.
($1 = RMB 7.1977)
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