A health-focused international venture capital firm is one of three new investors in Chinese krill-processing firm Function (Qingdao) Marine Technology.
As a health-focused firm describing itself as “a global venture capital platform investing in startups positively impacting the world through technology,” Cathay Innovations is part of the Cathay Capital group with offices in China, Europe, and the U.S.
Another investor in Function is China Railway Construction Investment Group – the venture capital arm of the state-owned company that builds and operates railways both domestically and abroad.
The third investor is another state-owned firm: Shandong Health Group. The company has made large investments in elder care facilities across China’s east coast.
Function, also trading as Fengshi Technology, is a major purchaser of krill oil from Norway-based Aker Biomarine and markets its products with a focus on the functional attributes of krill, particularly for elder care. In the summer of 2023, it released the latest in a line of products designed to adjust blood sugar levels. The company won the China Antarctic Krill Oil Leader Award at the 2023 China International Health and Nutrition trade fair.
China Railway Construction Investment’s involvement in the fundraising hints at the interest in krill from major Chinese corporations that have been looking for new sources of revenue after a downturn in the real estate sector. In 2022, China Railway Construction Investment withdrew its investment in troubled Chinese real estate developer Evergrande.
A statement from Function said the company “chose” the three investors from a list of 19 seeking to invest. The statement also included comments from Ma Jun, who is the director of Cathay Innovations’ Shanghai office, promising to leverage his company’s global portfolio of companies in the health and technology sector to further develop Function’s business.
Demand from the Chinese healthcare and pet food sectors has been a boon to major krill firms like Aker Biomarine – a leader in the sector – which has sought to expand its presence in China.
Photo courtesy of HNC Health and Nutrition Exhibition
