Cycle Capital Management announces first close of $116 million fund with Chinese investment group

Qingdao Haisi Cycle Fund

Beijing’s Qingdao City Construction Investment Group and Montreal-based cleantech VC firm Cycle Capital Management announced a first closing of $116 million CAD in their new joint fund.

The Qingdao Haisi Cycle Fund will target growth-stage industrial technologies companies across North America and China. The firms are looking for technology-enabled solutions to global challenges such as industry dislocations and climate change.

“The environment and the economy go together. We know that private investments, like the one
announced today, will drive the transition to the low carbon economy and are important in helping
accelerate clean growth,” said Catherine McKenna, Canada’s Minister of Environment and Climate Change.

The fund has already made its first $9 million investment in Haier-Ririshun Lejia, an affiliate of Chinese consumer electronics and home appliances company Haier. Haier-Ririshun Lejia’s SaaS solutions work to improve last-mile package delivery and extended warranties for ecommerce companies. The company will use the investment to help with more customized package delivery.

“By building a bridge, we will be able to provide better access to capital and strategic resources to the startups — key elements to enable the emergence of disruptive technologies by flagship businesses that are competitive in the global market,” said Andrée-Lise Méthot, founder and managing partner of Cycle Capital Management. “From a Canadian and North American perspective, this partnership will provide interesting opportunities for Cycle Capital’s portfolio companies wishing to expand and invest in China.