The VC firm co-founded by Chinese EV maker Nio will continue to invest in automotive and energy technology companies locally through its new fund.

Nio Capital managing partner Yan ‘Ian’ Zhu (pictured centre). Image courtesy of Nio Capital.

Nio Capital managing partner Yan ‘Ian’ Zhu (pictured centre). Image courtesy of Nio Capital.

Nio Capital, the Chinese venture capital firm spun out of Shanghai-based electric vehicle producer Nio, has raised RMB3bn ($417m) for a domestic-oriented fund.

Limited partners include unnamed local government guidance funds, national funds, family offices and listed companies that are active in the new energy vehicles and car parts sectors.

Nio Capital launched its first RMB10bn fund when it was started by Nio (then known as NextEV), VC firm Sequoia Capital and hedge fund manager Hillhouse Capital in 2016. The new fund lifted its total capital under management to RMB15bn (about $2bn at today’s rate).

Eve One Fund II, Nio Capital’s second fund, reached a $400m close in March 2022. It was backed by unnamed insurance firms, financial institutions, sovereign wealth funds, funds of funds, family offices, pension funds and foundations from China, the US, Europe, the Middle East, Southeast Asia and Africa.

According to Nio Capital managing partner Ian Zhu, the latest fund will continue focusing on innovative technologies in the automotive and sustainable energy industries. The firm’s portfolio included companies like battery material producer Ronbay and self-driving car developer Momenta.

A spokesperson told Chinese technology news outlet 36Kr that the fund will remain independent from Nio and the companies will not be required to supply their products exclusively to the carmaker.

Edison Fu

Edison Fu is a reporter and Asia liaison at Global Corporate Venturing.