TLDR:
- Chinese smart household appliance producer Dreame Technology launches a corporate venture capital arm called Empyrean Venture with a $1.5bn target to back AI and robotics startups.
- The initiative consists of a RMB10bn growth-stage strategic fund and a RMB1bn early to mid-stage incubation vehicle.
Chinese smart household appliance producer Dreame Technology has launched a corporate venture capital arm, Empyrean Venture, with a target of RMB11bn ($1.54bn). The initiative, formed in 2023, aims to support AI and robotics technology developers through two separate funds. The first fund is a RMB10bn ($1.4bn) growth-stage strategic fund, while the second is a RMB1bn ($140m) early to mid-stage incubation vehicle.
The incubation fund has already reached a first close, with capital coming from Dreame, as well as various Chinese local governments, state-owned enterprises, industrial firms, and family offices. One of the state-owned investors in the fund is Guosheng Fund, which is part of the Xiamen city government. Dreame is an anchor investor in the larger fund, along with an unnamed Chinese local government. The company has raised most of the required capital for Empyrean Venture.
Founded in 2017, Dreame is known for producing cordless hoovers, hairdryers, lawnmowers, and other household items. The company, valued at RMB20bn ($2.8bn), has received investment from consumer electronics producer Xiaomi. Despite US-China tensions impacting western capital flow into China, some corporates like Tencent Investment, Xiaomi, and Porsche are showing continued interest in the market through various investment initiatives.
