Unlocking China’s Technology Frontier: An Evergreen Structure Serving Long-term Corporate Innovation Partnerships
Through our years of investing in China’s technology ecosystem and working alongside global industry leaders, we have seen firsthand that meaningful access to innovation is not created through individual introductions or standalone projects. Venture clienting, corporate scouting, and innovation partnerships can be valuable access points for companies seeking specific technologies or solutions. But understanding where an industry is heading requires continuous engagement, tracking emerging technologies, developing relationships with entrepreneurs, and building the context needed to make informed investment decisions.
This is particularly important in science-driven industries, where the path from technological breakthrough to commercial application can take years. This insight shaped how we built CMVC: not simply as an investor identifying promising companies, but as a long-term partner connecting global industry leaders with China’s innovation ecosystem.
CMVC: Connecting global industry with China’s technology innovators
At CM Venture Capital, we believe successful technology investing requires a combination of scientific depth, investment discipline, and ecosystem connectivity. We have built our investment approach around three interconnected capabilities: strategy, technology, and market development.
Through the CM Evergreen Fund (CMEF), investors gain:
• Early access to science-driven technology companies across industries shaping the future economy;
• Investment exposure to high-growth companies from an early stage;
• Technology and market insights through CMVC’s scientific evaluation capabilities and ongoing engagement with entrepreneurs;
• Industrial and commercialization opportunities by connecting portfolio companies with corporate stakeholders for technology validation, strategic partnerships, supply-chain connections, and market expansion support;
• Global ecosystem access through international partners, markets, and industry networks.
Our objective is not simply to facilitate startup introductions, but to create a long-term relationship through which corporate investors can participate in China’s increasingly important innovation ecosystem.
Why an evergreen structure?
Engaging with emerging technology ecosystems is not a one-time decision. Technologies mature at different speeds and corporate priorities evolve. Traditional venture funds typically operate around fixed fundraising and investment periods. CM’s previous funds have also followed a closed-end structure. However, this model does not always align with the longer decision-making cycles and evolving strategic priorities of corporate investors.
CMEF was designed to address this mismatch through three structural features:
1. Flexible access aligned with corporate decision-making timelines
An evergreen structure allows investors to participate when strategic fit and investment conviction are established, rather than being constrained by a fixed fundraising deadline. This gives corporations greater flexibility to engage with the right opportunities at the right time.
Unlike some evergreen structures with perpetual fee models, CMEF has a defined fee framework, maintaining alignment between LPs and the GP over the investment lifecycle.
2. Continuous exposure across the portfolio lifecycle
Investors entering CMEF at different closes gain exposure based on the fund’s NAV. Rather than participating only in investments made after their entry, new investors can gain exposure to the broader existing portfolio alongside future investments.
3. Long-term investment with liquidity flexibility
Supporting breakthrough technologies requires patience, but investors also value flexibility in managing portfolio exposure and capital allocation.
CMEF balances these needs through an initial six-year lock-up period, after which LPs have the option to sell their interests back to the fund. This enables capital recycling while preserving alignment with the fund’s long-term investment horizon for early-stage technologies. This structure is underpinned by consistent fund performance and a strong NAV, which can support access to NAV-based financing as an additional source of liquidity.
NAV facilities can provide additional liquidity of up to 20% of fund NAV.
Source: Silicon Valley Bank (SVB)
Building the next generation of global innovation partnerships
As technology cycles accelerate, the ability to identify and understand emerging innovation ecosystems will become an increasingly important strategic advantage.
Through our work with entrepreneurs, investors, and industry leaders, we have seen that the most valuable innovation opportunities are rarely created through one-time interactions. They emerge through sustained engagement between those developing new technologies and those with the ability to scale them globally.
CMEF provides a model for engaging with China’s innovation ecosystem, combining strategic access, investment participation, and long-term partnership. Through the fund, MNCs can move beyond observing China’s technology ecosystem to participating in the development, commercialization, and global scaling.