Baidu launches $200m VC fund to invest in AR, VR
Chinese search engine Baidu has launched a $200 million venture fund that will focus on next-generation technologies, such as augmented reality (AR) and virtual reality (VR).
The fund will be managed by Baidu Ventures, an independent entity set up by Baidu. Separate from the company's existing investment team, the new VC firm can "use an innovative evaluation mechanism to speed up the decision-making process and make investments more efficient," according to a statement cited by China Daily, whose report was re-posted on a government website.
Robin Li (pictured), Baidu's co-founder and CEO, will be chairman of Baidu Ventures' investment committee. The VC firm will also hire artificial intelligence scientists and experts to serve as advisors, providing decision-making and post-investment support.
Baidu's revenue decreased to RMB14 billion ($2 billion) in 2015 from RMB22 billion in 2014, while its net profit dropped 37% to RMB6 billion. This weak performance was attributed to a slowdown in the search and online advertising businesses as a result of stricter rules on online advertisers.
Baidu has responded by expanding into new areas in search of growth. Two months ago, it set up a $303 million media fund that will support the production of at least 30 movies over the next two years.
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