Montreal-based cleantech VC firm Cycle Capital Management has announced the close of their first industrial tech fund with Qingdao City Construction Investment Group.

The $116 million was started in 2014, and will invest in growth-stage industrial technology companies located in China, Canada and elsewhere in North America.

The Qingdao Chengtou Haisi Cycle Equity Investment Fund is a RMB $600 million industrial hi-tech venture capital fund. It will invest in growth stage capital in industrial technology startups in China, Canada and North America. The fund embodies the collaboration between two major players—in Canada and China respectively—who are at the forefront of developing innovative, technology-enabled solutions to major global challenges such as industry dislocations and climate change.

The fund has already made its debut investment of RMB 50 million to Haier-Ririshun Lejia, an affiliate of Qingdao-based consumer electronics and home appliances company Haier.

“The environment and the economy go together. We know that private investments, like the one announced today, will drive the transition to the low carbon economy and are important in helping accelerate clean growth,” said the Honorable Catherine McKenna, Minister of Environment and Climate Change of the Government of Canada.

Established in 2008, Qingdao City Construction Investment Group (Chengtou) is wholly owned by Qingdao municipal government and has total assets of RMB $150 billion. In order to serve Qingdao’s strategic goal of developing a livable, auspicious and energetic metropolis, Chengtou engages in infrastructure construction, land and property development and investment, solar power generation, healthcare and environmental protection industries, financial services, international capital management, basic materials trading and education via 128 tertiary subsidiaries.

“Through this joint endeavor with Chengtou, Cycle Capital aims at fostering the development of high potential innovative businesses across China, Canada and North America. By building a bridge, we will be able to provide better access to capital and strategic resources to the startups – key elements to enable the emergence of disruptive technologies by flagship businesses that are competitive in the global market,” said Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital Management. “From a Canadian and North American perspective, this partnership will provide interesting opportunities for Cycle Capital’s portfolio companies wishing to expand and invest in China.

The new fund will draw on the resources of both investment firms, forging connections between China and Canada’s startup ecosystems.