Google's departing China boss opens $US115M investment fund

The fund has backing from major IT players including Lenovo's parent company and Foxconn

Kai-Fu Lee, who left his job as Google's China head last week, launched an angel investment fund on Monday that aims to cultivate three to five new high-tech companies per year in China.

The fund, named Innovation Works, launched with $US115 million in investment from major IT players including Foxconn and Legend Group, the parent company of Lenovo, it said in a statement.

The fund will use the money to train young entrepreneurs and help them build companies that could later be sold or listed on a stock market.

It will focus on the Internet, mobile Internet and cloud computing industries in China.

The fund aims to develop 50 companies and train 500 people in 10 years, and may eventually seek a public listing itself, Lee told reporters at a briefing.

"My hope is there will be a company in these 50 that becomes a world-class company," he said.

Innovation Works will speed the growth of its companies by giving them shared resources, such as software and server room space, and potentially by helping them partner with the fund's own investors, such as Legend, Lee said.

The fund is launching in a market where entrepreneurial skills are currently scarce, Lee said. Compared to most angel investment outfits, the fund will both keep a larger cut from the sale or listing of its offspring and give them more support, Lee said.

The fund may be able to spin off companies within its first year, and it will pay back its investors when it begins doing so more regularly after three to five years, Lee said.

China's Internet industry is booming as incomes rise in the country and more people get online.

Official statistics say China had nearly 340 million Internet users at the end of June, more than the population of the U.S.

Other investors in Innovation Works include venture capital firm WI Harper Group and Steve Chen, a co-founder of YouTube.

Lee left Google last week after four years as the company's president of Greater China, during which he led the company's growth into a formidable player in China's online search market.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags GoogleChinastartups

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Owen Fletcher

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?