The U.S-China Green Fund Brings Western Tech To China’s Environment
Summary
If youve lived in Beijing in the past ten years, youre probably familiar with the sensation of drinking boiling hot water during the summer and breathing through a thick white mask during the winter.More than half of the water in China is considered unsafe to drink, and 16 of the top 20 most polluted cities in the world are located in the country, according to the Brookings Institution.The central government has positioned environmental regulations as an important part of its national objectives. He added that the firm dedicates itself to 30 percent pre-investment, and 70 percent post-investment management.Two of the companys investments, namely East Low Carbon and HosJoy, are looking to address Chinas energy consumption and efficiency.Founded in 2011, East Low Carbon (ELC) provides large businesses and facilities with consumption reduction and management, equipping their buildings with smart controls, energy efficient lighting, heating, and AC and other renewable-energy based systems. Thats a pain.Hosjoy is aiming to solve that consumption upgrade problem through its app, which allows individuals and families that are buying or renovating a home to view and order preferred products from the companys network of stores. I saw it tested in a few small cities and I saw it tested in larger cities with 8 million people, and I realized that the technology and the companys business model would work.Bai says that AIpark has since secured a contract to implement its technology in two-thirds of Beijing, a city of 30 million people.Although the firm has invested in a startup with potential for growth alongside the new energy vehicle sector, it has explicitly decided not to place its eggs in that government-subsidized basket.The U.S.-China Green Fund And Its Government ConnectionsThe team believes any investment that USCGF makes needs to make sense without government subsidies, according to Bai. Bai, who had been following the electric vehicle space since 2006, said the manufacturing costs combined with inflated support dissuaded him.Its a very exciting area, but from a risk-reward perspective I was uncomfortable, Bai told Crunchbase News.On the other hand, the firm also emphasized the importance of working with the government, specifically as it relates to the benefits that it can bring portfolio companies, like AIpark.