BEIJING, CHINA May 4, 2016: Lenovo today announced the launch of Lenovo Capital and Incubator Group (LCIG) to integrate its global resources, enhance its Internet services and intelligence ecosystem via investments and foster innovation within and outside of Lenovo. LCIG will invest in core-technology and Internet related areas globally, investing $500 USD million initially in projects through the Lenovo Capital Phase II Investment Fund, which will focus on areas including cloud computing, big data, artificial intelligence, robotic and Internet services. Yuanqing Yang, Lenovo chairman and CEO, and Zhiqiang He, Lenovo SVP, CTO and LCIG President launched the Group and Fund today at an event in Beijing.
LCIG will drive global technology incubation and investment via its full-value-chain business structure comprised by its subsidiaries, including Lenovo accelerator, venture investment, investment management. By incubating subsidiaries and introducing external venture capital, LCIG encourages rapid and sustainable development of innovative business opportunities. Currently LCIG subsidiaries include SHAREit, Lenovo Cloud, Lenovo Connect, Online Biometric Authentication, Lenovo Finance, Lenovo Smart Healthcare, and Lenovo New Glass. LCIG will continue to make capital investments and accelerate portfolio company growth. Current investments include more than 40 startups including iDreamSky, Face++, StyleWe, Shopex, ZAKER, Diting Technology, SMARTX, etc.
“Technology breakthroughs are changing the way all of us live today,” said He Zhiqiang, Chief Technology Officer, Lenovo. “With our long-industry history and experience of driving and developing core innovations, we’re well-prepared to shape the future of game-changing technologies through funding and nurturing start-ups and bringing incubator projects to market.”
As a globally driven fund, Lenovo Capital has invested in innovative technologies such as Nok Nok Labs in the US Silicon Valley and VC CPI in Israel. More than 80 percent of Lenovo Capital’s 40 start-ups focus on technologies applicable to industry and individuals.
Examples include:
- deep learning face recognition and AI technology by Face++
- enterprise cloud storage computing technology by SMARTX
- Internet biometric authentication technology by Nok Nok Labs
- eCommerce SaaS platform by Shopex
- smart router operating system newifi OS by Newifi
- mobile ad big data by Dianjoy/Lianchuang Hudong/wenjuan.com, financial big data-based robotics asset management and investment advisory platform APP by Huilicai, and big data based robotics buyer and precision marketer eCommerce platform by StyleWe
Face++, a recent successful investment, partners with Lenovo to provide mainstream financial and security offerings using biometric recognition using core cloud-based AI technology. Face++ now offers facial recognition solutions to Internet companies, including Alipay and over many Internet banks in China in addition to security and protection and education system providers.
Lenovo Capital to Incubate Its Subsidiaries
Recently Lenovo adopted a business model of “subsidiary incubation” where external venture capital funds steady and rapid growth of Lenovo’s subsidiary businesses. These include SHAREit, Lenovo Cloud, Lenovo Connect, Lenovo Online Biometric Authentication, Lenovo Finace, Lenovo Smart Healthcare and Lenovo Smart Glass.
- In 2015, Lenovo split off SHAREit with venture capital investment. Globally available, SHAREit, a nearfield transmission app to make sharing files and more simple, has more than 500 million users
- Lenovo Cloud provides cloud services to 200 of the Fortune 500 enterprises
- Lenovo Online Biometric Authentication offers FIDO finger print payment solutions to Alipay, JDpay, and China Telecom Bestpay
- As the largest virtual telco operator worldwide, Lenovo Connect has 11 million subscribers in Europe, Australia, the US and China.
- Lenovo Smart Healthcare supplies cloud-based hospital solutions to hospitals
Value-Chain Support for Start-ups
Lenovo Capital supplies start-ups a variety of resources across the entire value chain, from a global R&D structure with approximately 10,000 engineers to supply chain to reduce high initial costs (particularly in smart hardware) to help with administrative support functions and customer procurement. Lenovo also created the Lenovo Accelerator to serve global technology entrepreneurs in the early stages and focuses on core technology and Technology, Media Telecommunications. It will work with Hong Kong Cyberport to target start-ups specializing in core technologies.
Lenovo Capital, Legend Star, Legend Capital, and Hony Capital comprise the Lenovo Investment Cluster. In investment projects, they collaborate to pave the way for investment and financing while creating environments for rapid business growth. Lenovo Capital has also joined hands with overseas institutional investors in the US and Israel to expose start-ups to a globalized investment market.
About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is a $46 billion global Fortune 500 company and a leader in providing innovative consumer, commercial, and enterprise technology. Our portfolio of high-quality, secure products and services covers PCs (including the legendary Think and multimode YOGA brands), workstations, servers, storage, smart TVs and a family of mobile products like smartphones (including the Motorola brand), tablets and apps. Join us on LinkedIn, follow us on Facebook or Twitter (@Lenovo) or visit us at www.lenovo.com.
