Starbucks, Sequoia To Team Up On China Investments

Starbucks today unveiled a strategic partnership with Sequoia Capital China to make co-investments and forge partnerships with “next-generation” food and retail technology companies.

The agreement was announced just after Forbes this month named Sequoia Capital China’s founding partner Neil Shen as the world’s No. 1 venture capital investor on the 2020 Forbes Midea List (see link here to Friday interview with Shen).

“China’s vibrant environment is a rich ground for entrepreneurship that has seen the emergence of many local innovators that we hugely admire,” Starbucks China CEO Belinda Wong said in a statement. “The partnership enables Starbucks to tap into the most dynamic Chinese technology entrepreneurs.“

In the statement, Shen said:  “The partnership presents an exciting platform for our portfolio companies to test, commercialize and scale new innovations for China. Together with Starbucks, we look forward to bringing the digital transformation of consumer retail industry in China to the next level.”

Through the partnership with Sequoia Capital China, Starbucks will explore opportunities to embed digital technologies across all dimensions of its retail business to harness the power of data-driven analytics, modelling and decision making, the statement said.

“Together with Valor Siren Ventures launched in the U.S. last year, we are excited to tap the tremendous energy of technology entrepreneurs from two of the world’s largest and most dynamic markets, to pioneer innovative solutions that could reimagine the global retail landscape,” said Kevin Johnson, president and chief executive officer of Starbucks.

Last month, Starbucks said it would build a Coffee Innovation Park in China to extend its global roasting network and lay a foundation for continued business growth and development.

–Follow me @rflannerychina