FoxConn and IDG seeks investment in CarTech

Foxconn Technology Group along with venture firm IDG Capital presented to investors on their intentions of raising about 10 billion yuan (US$1.5 billion) to help startups in technologies ranging from AI to batteries for automotive industries .

Under their presented plan, the both firms are willing to put in about 10 percent of the money to be raised.These firms will delegate executives with experiences in the industry. The new fund from Foxconn represents their initiative to stake out a spot in the market for the emerging car tech- specially in China. The other promising markets for them include the US and Japan.

Beyond robotic cars, China identifies the new energy transportations as an strategic emerging industry. Thanks to the Chinese government support, has helped the Chinese market to surpass the U.S in 2015 as the world’s largest market for such automobiles.

This proposed fund will run for up to seven years and charge the usual 2 percent management fees and take 20 percent cuts on gains.