Xpeng is a strategic cornerstone funder as Rockets Capital closes its first round of funding for its inaugural US dollar fund, raising more than $200 million.
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Rockets Capital, a venture capital fund launched only this year, announced today that it has closed the first round of funding for its inaugural US dollar fund, raising more than $200 million.
Xpeng Motors (NYSE: XPEV, HKG: 9868) is the strategic cornerstone funder of the dollar fund, with investors including IDG Capital, eGarden, Sequoia China, 5Y Capital, and GGV Capital participating in the financing.
Founded in early 2022, Rockets Capital focuses on investment opportunities in the smart electric vehicle industry chain, clean energy and cutting-edge technology sectors, with a focus on early and growth-stage targets.
Despite only being founded this year, Rockets Capital has already signed on to invest in several startups in the new energy sector, according to the firm.
The transformation of smart electric vehicles and mobility technology is a huge and disruptive investment opportunity, and Xpeng will identify and drive accelerated change in the mobility ecosystem through its partnership with Rockets Capital, said Brian Gu, vice chairman and president of Xpeng.
This is Xpeng's latest effort in trying to expand its presence in the industry chain, as its local counterparts strengthen their respective ties to the industry chain by investing in startups.
Last September, AI4Auto, a WeChat account focused on the automotive industry, reported that Xpeng had formed its own venture capital fund and would be raising capital independently.
The fund will be led by Gu and will include investment bankers from JPMorgan Chase and Goldman Sachs, the report said.
So far, however, Xpeng has not confirmed the fund's existence.
Xpeng's local peer Nio (NYSE: NIO, HKG: 9866) set up a venture capital arm, Nio Capital, in 2016 to manage a renminbi fund and a US dollar fund.
The RMB fund, with an initial size of RMB 10 billion, was jointly launched by Nio Capital, Sequoia China and Hillhouse Capital, and focuses on growth and maturity stage investments. Its dollar fund focuses on early to mid-stage investments.
To date, Nio Capital has invested in dozens of companies, including Lotus, which is majority-owned by Geely, self-driving technology company Pony.ai, and augmented reality (AR) technology company Nreal.
Earlier this month, Li Auto established a subsidiary engaged in venture capital with a registered capital of RMB 600 million.
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