Raymond Zheng, senior managing director for Honda Xcelerator Ventures, is one of the 100 leading corporate venturing professionals in our 2025 Powerlist.
Honda Xcelerator Ventures exemplifies the new breed of corporate venture capital, with a dual focus on strategic investments and fostering partnerships between startups and Honda business units.
Raymond Zheng, who leads strategic investments and open innovation activities for the carmaker, says the unit’s mission is to help it think less like a straightforward vehicle manufacturer and more like an organisation that is part of the wider technology ecosystem.
Honda added the venture element to its Xcelerator programme in 2022, and while the first year was mostly about finding its sea legs and the second was slower than expected, year three has represented a sizeable step forward, as it looks to hone in on the best portfolio companies.
“We are fascinated by unique technology that can bring a lot of value, what are sometimes called wow factors.”
“This year is the third year and we are bouncing back quite nicely,” says Zheng. “We are really focused on technology and Honda is a very engineer-driven company. We are fascinated in unique technology that can bring a lot of value, what are sometimes called wow factors.”
The team’s investment focus is on carbon neutrality, mobility, robotics and manufacturing technology. Recent investments include machine image technology developer SiLC Technologies and Reverion, which is working on carbon-negative biogas power plants.
The unit has a budget of ¥10bn ($70m) per year. While some automotive manufacturers, such as Toyota and BMW, have dedicated funds that allow them to operate more quickly and invest more broadly, Zheng says Honda has its own formula and that its advantage lies with being able to offer portfolio companies a more strategic partnership model. Each CVC fund needs to find the sweet spot within its own corporate culture.
“We wanted to support startups on the partnership side, as well as the funding side,” says Zheng. “That might take longer, but we understand the value in a startup really working and what Honda can offer the startup.
“Originally, when I first got into CVC, I was thinking: ‘Some models are much easier to operate, but that is not necessarily true. That has been a big lesson.”
The Global Corporate Venturing Powerlist represents the 100 individuals spearheading the future of the corporate venturing industry.
These individuals excel in terms of their venturing approach and structure, number and quality of portfolio companies and in their contributions to the corporate venturing profession.
