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Unlikely Alliances
US Investors Tap Into Chinese AI Startups, Equator Backs African Climate Tech Startups, and a Startup Looks to Scale its Tailor-Made Storage Solutions.
Adam from VC Brags
April 06, 2023
Welcome Shareholders,
In this daily edition of the Brags Newsletter, we'll cover how US institutional investors are funding Chinese AI startups despite heightened trade tensions, Equator Bets $40 Million on African Climate Tech Startups, and a Startup Looks to start the next Cabinet Revolution with its new funding.
So sit back, grab a snack, and enjoy!
Venture Today đź‘Ź
US institutional investors are indirectly funding numerous Chinese AI startups, aiming to rival OpenAI, despite heightened trade tensions between the two superpowers.
US investors, like endowments, support prominent Chinese VC firms such as Sequoia Capital China, Matrix Partners China, Qiming Venture Partners, and Hillhouse Capital Management, which are securing local AI startup deals. US government officials have been increasingly concerned about investments by VCs making investments in Chinese startups, especially across advanced industries like semiconductors and biotechnology.
Sequoia China has made an investment in Recurrent.ai, a startup launched by Yang Zhilin, who is an assistant professor at Beijing's Tsinghua University (China's equivalent of MIT). On the other hand, Matrix and Qiming backed Beijing-based AI startup Frontis, which is developing a product similar to ChatGPT. The company was founded in 2021 by Tsinghua professor Zhou Bowen, who previously led JD.com's AI research lab.
Who's Raising?
Equator, a climate tech VC firm targeting sub-Saharan Africa, said that it would raise $40 million for its debut fund from partners including BII, GEAPP, the Shell Foundation, and DOEN Participaties.
Equator plans to invest in seed and Series A startups within the energy, agriculture, and mobility sectors, capitalizing on numerous untapped market opportunities. Equator aims to make up to 15 investments in this fund's life cycle, participating in rounds of $10 million or less, typical for sub-Saharan Africa's pre-Series B cleantech startups.
The firm will invest between $1-2 million in seed stages and $2-4 million in Series A stages. With teams in Nairobi, Lagos, London, and Colorado, Equator plans to collaborate with Factor[e] Ventures, a venture builder and pre-seed investor organization, on deal sourcing, due diligence, and providing post-investment support for portfolio companies growth.
Startup of the Day
California-based hardware startup Ronbow is raising $10.5 million in a Series A round led by Celtic House Asia Partners to speed up the delivery of its customized cabinets with proprietary design and manufacturing.
The investment round also features participation from AME Cloud Ventures, initiated by Yahoo founder Jerry Yang; Harpers Investments; Telenav founder Haiping Jin; and Weili Dai, co-founder. Ronbow offers an end-to-end solution enabling customers to connect directly with manufacturers, eliminating middlemen. Its design platform assists users in determining cabinet style and size before transferring the information to cutting machines with Ronbow's software, driving production.
The data-driven approach reduces completion time by 90%, delivering products in 3-6 weeks and cutting costs by 40% compared to traditional manual methods. Ronbow projects $10 million in revenue this year, with plans for ten showrooms. The company, which currently serves over 1,000 customers, including Californian homeowners, professionals, and other commercial clients, plans to operate 30 showrooms by 2024, expecting annual revenues of $50-$60 million.
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