Henkel Adhesive Technologies recently announced that it is strengthening its corporate venture capital activities by investing in the third fund of Richland Capital (Richland Capital Fund III), Beijing, China. Richland Capital is a leading investment firm for emerging technology in China, focusing on investments in advanced materials, high-end manufacturing equipment, and digital technologies, as well as digital business models.
As limited partner of the fund, Henkel will strengthen its access to the fast-growing start-up scene in China, which has become a global hotspot for material science in recent years. Henkel will get access to an annual deal flow of more than 1,000 start-ups with strong deal-sourcing capabilities, providing innovative technologies with a strong focus on advanced materials and closely related digital business models.
“China without a doubt is not only a key market for our Adhesive Technologies business but is also a global hub for disruptive innovations and new business models in material science,” said Paolo Bavaj, head of Corporate Venturing, Adhesive Technologies. “We are convinced that Richland Capital is the best partner to strengthen our access and to provide attractive business opportunities for us. The management team brings a strong financial expertise, a broad network of start-ups and longstanding experiences in business development in large corporates. Thus, we see an excellent overlap between Henkel’s ambitions and Richland Capital’s capabilities.”
According to Zhebo Ding, Ph.D., managing partner of Richland Capital, “Henkel is a global-leading technology company with a long history of excellence in adhesives, sealants, functional coatings and specialty materials. Richland Capital is very excited to have Henkel join Richland’s Venture Capital Fund III that is dedicated to investing in China’s emerging technology sector with a particular emphasis in advanced materials. Through the partnership with Henkel, Richland can better help Chinese start-ups accelerate their growth by leveraging Henkel’s innovative capabilities and global supply chain. On the other hand, Richland can support Henkel to build collaborative partnership with local innovative startups and to identify new growth opportunities in the region.”