Evonik and HosenCare launch innovation fund in China  

Evonik and HosenCare officially announced the launch of a new China-focused innovation fund—Jinjiang Houxin—during the 8th China International Import Expo. The fund is jointly initiated with multiple partners to deepen local innovation collaboration and accelerate the commercialization of high-quality, sustainable technologies in China.

The Jinjiang Houxin Fund will be managed by HosenCare, with cornerstone investors including Evonik, New Hope Group, Quanzhou Equity Investment, and Jinjiang Equity Investment—government-backed funds that together form a robust ecosystem of industrial expertise, policy support, and extensive networks to empower early-stage innovation.

“China is rapidly accelerating its innovation capabilities and emerging as a global leader across multiple sectors. It is now one of the most important venture capital markets worldwide,” said Bernhard Mohr, head of Evonik Venture Capital. “This dynamic environment offers many opportunities for Evonik to capture innovation and business development through strategic VC partnerships.” In 2024, venture capital investment in China exceeded US$40 billion, accounting for 20 percent of the global total, demonstrating strong market resilience and vitality.

The newly established fund will concentrate on the Chinese market. The focus is on sustainability topics relevant to Evonik’s innovation strategy, including biosolutions, energy transition, and circular economy technologies. These areas are highly aligned with China's rapid technological iteration and policy direction, serving as strategic pivots for the fund to tap into the thriving domestic venture capital market.

The fund also reflects Evonik’s strategy to pursue a balanced presence across the three world regions—Europe, the Americas, and Asia, reinforcing its commitment to global innovation and regional collaboration.

“Venture capital is not only a testament to Evonik's continuous enhancement of local innovation, but it is also a vital component of our open innovation network in China,” said Fuliang Xia, president of Evonik Greater China. “This fund will enable us to better connect with local innovation opportunities, from early-stage ventures to scalable commercial projects, promoting win-win cooperation between Evonik and local enterprises. It also reflects our active response to the government’s call to invest early, invest small, and invest in hard technology.”

"We are pleased to jointly announce the establishment of the Jinjiang Houxin Fund with Evonik," said Tang Xun, Founding Partner of Hosen Capital, at the signing ceremony. "Evonik's global expertise in specialty chemicals and its commitment to open innovation complement our resource integration capabilities in the local market. We believe this partnership will serve as a bridge connecting global perspectives and local potential, discovering and nurturing competitive Chinese innovation projects."

The fund has been officially established and is expected to make its first investment soon. Evonik will leverage its innovation capabilities and industrial expertise to help portfolio companies accelerate growth and drive the transformation of cutting-edge technologies into commercial success.

Since 2016, Evonik Venture Capital is an active participant in the Chinese innovation ecosystem and has invested in five funds managed by renowned institutions such as GRC and Richland Capital, enabling the company to identify high-value-added, sustainable opportunities tailored to the local market.