Hyperdrive
Only 1% of China Electric Car Startups to Survive, Investor Says
- NIO Capital favors JVs between startups, traditional carmakers
- Managing Partner Zhu says trade war will slow self-drive shift
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China is home to hundreds of startups betting on the electric car revolution, but only 1 percent will be able to survive in an industry that requires significant investment in technology, according to NIO Capital.
The venture capital fund, which is partly backed by Chinese electric-vehicle company NIO, is nonetheless very cautious on buying into EV startups, said Managing Partner Ian Zhu. The Shanghai-headquartered firm is seeking to raise 10 billion yuan ($1.5 billion) for an onshore fund and favors investing in joint projects between auto startups and traditional carmakers because they combine innovation with real manufacturing capabilities, he said.