VC funds backed by companies to continue to boom

Corporate venture capital or CVC funds will continue to boom in China, industry observers said.

CVC funds are different from traditional venture capital or VC firms. While the latter are by and large driven by the goal of maximizing returns on their short-term investments, CVC funds such as Intel Capital, Google Ventures and Alibaba-backed Blue Pool Capital accord priority to strategic, long-term objectives.

That's because financing new ventures that promise innovations could help them discover synergies with existing businesses.