China’s Baidu acquires VC-backed AI player Raven Tech

Following the transaction, Raven Tech founder Cheng Lü will become head of Baidu’s smart home device business. He will report to Qi Lu, who joined Baidu last month from Microsoft as part of a push into AI technology.

Founded in May 2014, Raven Tech develops AI operating systems for smart home devices. It has created an AI-powered voice assistant, named Eva, which is built within a mobile app Flow. Through voice commands, users can call taxis, find restaurants or play music through third-party online platforms. Raven’s products also include a smart home controlling system and a music search and player.

The start-up is an alumnus of the Microsoft Ventures Accelerator and US Y Combinator. It previously received VC funding from the investors like ZhenFund, Matrix Partners China and DCM Ventures.

Baidu is ramping up its investment in new technology. In September, it established a $200 million VC fund, managed by independent entity Baidu Ventures, which will target next-generation technologies such as augmented reality (AR) and virtual reality (VR). Last week the fund participated in a Series B round for New Zealand-based holographic technology company 8i.

Separately, Baidu has also launched a RMB20 billion ($3 billion) investment fund, called Baidu Capital, to target mid- and late-stage internet deals, and a $303 million media fund that will support the production of at least 30 movies over the next two years.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Trade sale
• Technology
• China
• M&A
• Baidu
• TMT
• Venture
• ZhenFund
• Matrix Partners
• DCM-Doll Capital Management