Netizens recently took notice of the NIO logo in the list of companies that Porsche is revealed to enter into a cooperative relationship with during its 2020 Global Press Conference. After much speculations about whether Porsche has invested in the automobile company, Porsche Ventures officially announced that it has invested NIO Capital and not NIO Automobile.
NIO Capital is a market-oriented private equity investment institution, an industrial fund independent of NIO Automobile. The venture capital fund focuses on mobility and future technologies. Porsche Ventures has made a strategic investment in the company based on its insights and resources in the automotive field and has so far, made good returns on the investment.
NIO Capital has both US dollar and RMB funds. At this time, Porsche bought the “NIO Capital” fund to strengthen its connection with China’s future travel market. Chairman Li Bin did not disclose specific details on the financing, stating only that NIO’s business in China will be an independent entity to attract investors in RMB. The final agreement between both NIO Capital and Porsche Ventures is expected to be officially signed before the end of April 2020.
