AsianFin — CAS Star, one of China's leading deep-tech venture investors, closed the first round of its Pioneer Venture Capital Fund, raising 2.617 billion yuan ($360 million) to back early-stage hard tech companies across materials, energy, information, life sciences, and space.
The “Pioneer” fund, officially launched at a ceremony in Shanghai on July 16, allocates 70% of its capital to early-stage projects, targeting original breakthroughs from “zero to one.” The remaining 30% will support growth-stage companies aiming to scale from “one to ten.” Artificial intelligence is positioned as the fund’s strategic core.
The fund is managed by CAS Star and backed by 19 limited partners, including the National SME Development Fund, Shanghai Guotou Pioneer AI Fund, Pudong Venture Capital, Shanghai Future Industry Fund, and Xike Holdings. Registered in Shanghai’s Pudong district, the fund has an eight-year duration.
The initiative reflects China’s intensifying drive to accelerate indigenous innovation and industrialize frontier technologies amid geopolitical headwinds and rising U.S.-China tech competition.
At the conference, Mi Lei, Founding Partner of CAS Star, positioned artificial intelligence as a general-purpose technology reshaping the five fundamental areas of physics: matter, energy, information, life, and space. He called for “patient capital” to fuel breakthroughs in AI, photonics, and quantum computing — likening AI’s transformative impact to the steam engine and integrated circuits.
Li Hao, CAS Star’s Founding Partner, elaborated on the fund’s thesis: investing in AI’s application across physics, particularly at the computing power layer. That includes AI infrastructure, photonic chips, quantum processors, and advanced energy systems such as controllable nuclear fusion and fission. In life sciences, the fund is eyeing synthetic biology and novel drug platforms; in space, aerospace and satellite technologies are in focus.
CAS Star has already built a substantial “AI+” industry portfolio anchored in compute-intensive applications. Its investments include Chinese AI players Zhipu AI, AgiBot, UISEE, Zidong Taichu, and Open Source China, spanning large language models, robotics, and edge AI infrastructure.
Li said the increasing sophistication of LPs was a key theme in the latest fundraising round. “They now make sharper, market-based judgments and show greater confidence in hard tech’s long-term upside,” he noted.
CAS Star also became the first Chinese private equity firm to issue a sci-tech bond last month. The 400 million yuanissuance, with a 2.10% coupon and “5+5” year maturity, was oversubscribed 3.58 times, underscoring institutional demand. Li said the successful issuance strengthened LP confidence and acted as a form of “credit enhancement” for the fund.
At the heart of CAS Star’s strategy is a novel incubation model that goes upstream in the innovation cycle. The Shanghai High-Quality Incubator, launched in late 2023, targets technologies in the earliest stages of development — even before proof-of-concept.
The incubator supports research at the academic paper stage (technology readiness levels 1–3), helping scientists move from principle design to industrial application. It also engages in “deep incubation,” from team formation to product development and commercialization — providing a full-stack platform from PI to IP to IPO.
Already, seven projects — including Yuanjiwei and Huake Lengxin — have entered advanced or deep incubation stages. The incubator has been officially recognized as part of Shanghai’s first cohort of “high-quality incubators.”
Li Hao explained the fund’s name, “Pioneer,” originated from a technical term in the Chinese Academy of Sciences (CAS), traditionally referring to fundamental, interdisciplinary technologies. Its extension into venture capital reflects CAS Star’s intent to actively lead investments in China’s next wave of disruptive innovation — particularly as scientific discovery moves into more complex “midstream” and “deepwater” commercialization zones.
Bottom Line
The closing of the Pioneer Fund underscores China’s evolving venture capital landscape, where deep-tech incubation, sovereign LP alignment, and long-duration capital are converging to back breakthroughs in AI and frontier science. CAS Star and its LPs are betting that hard tech — once seen as too slow and uncertain — is now China’s best path to long-term technological sovereignty.
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