Porsche Ventures, the corporate venture capital (CVC) arm of German automobile manufacturer Porsche, has secured the first close of its debut Chinese VC fund.
Set up with investment bank China International Capital Corporation (CICC), the CICC Porsche (Shanghai) Venture Capital Investment Partnership, will help amp up Porsche’s ambitions in China, according to an announcement by CICC on Wednesday. The statement did not disclose the capital raised in the first close.
The CICC-Porsche Fund will be scouting for opportunities in new energy and intelligent connected vehicles.
Even before the launch of its first fund, Porsche has made direct investments in Chinese startups including 3D printer manufacturer INTAMSYS and smart energy solutions provider EnjoyElec.
In the first quarter of the year, the Porsche Group reported a decline in sales and earnings. Group sales revenue stood at 9 billion euros, down from 10.1 billion euros a year ago. Group operating profit was 1.28 billion euros, compared with 1.84 billion euros in the year-ago period.
Amid the intensifying price war in China, the firm delivered 16,340 vehicles between January and March 2024, down 24% from the same period last year.
“Key reasons for this are the focus on value-oriented sales, the continued tense economic situation in the Chinese market and a strong Q1 last year due to post-COVID catchup effects,” the company said in the release.