Chinese venture capital firm Govtor Capital has injected RMB 78 million ($11 million) into Jiangyin Alcom Solar Equipment, a solar company based in Jiangsu province.
Founded in 2006, Alcom Solar mainly produces aluminium frames used in solar panels. In 2008, the company’s revenues were approximately RMB 400 million. The investment will be used to develop accessories for the main parts and integration systems of solar cells, as well as fund research and development in Alcom Research Centre.
Govtor Capital will also help Alcom Solar improve its development strategies, business model, and management and governance structure. The firm aims to eventually list the company either domestically or overseas.
Also known as Jiangsu High-Tech Investment Group, Govtor Capital is one of the earliest venture capital firms in China, specialising in province-level investments. The firm currently manages roughly RMB 5 billion in assets across 27 venture capital funds.
Venture capital funds targeting Chinese provinces are on the rise. This week, the Beijing Zhongke Fangshan Venture Capital Fund, focused on Beijing’s suburban areas, reportedly raised RMB 500 million.
In early January, five Chinese institutions launched the Nanhua Venture Capital Fund, at least 30 percent of which will be invested in Hainan province. The fund is targeting RMB 1 billion.