Venture capital fund looks to China start-ups that embrace virtual reality, internet of things

Global venture capital fund 500 Startups plans to invest in at least 20 early-stage Chinese companies this year, focusing on those involved in virtual reality (VR) and the so-called Internet of Things (IoT), according to Edith Yeung, a partner at the US-based firm.

“We want to help Chinese companies expand in the US,” Yeung said , adding that the fund was favourable towards VR content creators, since large companies, including Sony and Facebook, are already focused on VR hardware.

Yeung also said that in the IoT sphere interest is high for companion robots that take care of children and the elderly, as well as security solutions for IoT devices.

Virtual reality technology displays images close to users’ eyes and creates the illusion of being in a different environment, while IoT refers to a wide range of mobile devices linked online that can be controlled by smartphones and other devices.

Yeung said the initial plan of 500 Startups is to invest at least US$5 million in nascent Chinese companies this year.

Founded in 2010 in California’s Silicon Valley, 500 Startups makes investments in about 200 early-stage companies around the world each year.