New US$100m China Ireland Technology Growth Capital Fund launched

17 Jan 2014

Irish and Chinese tech companies are set to benefit from a new US$100m venture-capital fund that has been established to accelerate the export growth of tech firms in both countries.

Dublin venture-capital firm Atlantic Bridge Capital has joined forces with Silicon Valley-based WestSummit Capital to launch the new US$100m China Ireland Technology Growth Capital Fund, which Summit Bridge Capital will manage.

The aim of the fund will be to make equity investments in fast-growing technology companies with a presence in Ireland that have a substantial or strategic interest in China, as well as Chinese fast-growing companies that view Ireland as a gateway to the broader European market.

The fund will target companies operating in core technology sectors, such as internet, software, semiconductors and clean technology, and areas of technology for which the fund’s strategy is uniquely positioned, including but not limited to agriculture, food, medical and financial services.

Centres of technology innovation

“Ireland plays a critical role as a major hub of activity connecting Europe with international markets, and as a centre of technology innovation in the region,” Raymond Yang, managing partner of WestSummit Capital said.

“China represents one of the largest and fastest-growing markets in the world for nearly every category of technology related products and services. 

“We believe that there is a highly attractive investment opportunity for the China Ireland Technology Growth Capital Fund to further link these two dynamic economies through a highly focused cross-border strategy. We are excited to partner with NTMA, CIC and Atlantic Bridge in this endeavour,” said Yang.

The National Pensions Reserve Fund and China Investment Corporation will support the fund. The two organisations are to make €6.8bn in resources available for investment on a commercial basis.

“We are already seeing strong interest from Irish technology companies in the Chinese market and believe this new fund is uniquely positioned to add value to these companies as they scale in China,” said Elaine Coughlan, co-founder and general partner at Atlantic Bridge Capital.

Shanghai image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years