Registration Number: 648605
Member of the Persian Gulf Petrochemical Industries Group
The Non-Governmental Research and Technology Fund for Corporate Venture Capital of the Persian Gulf Petrochemical Industries, hereinafter referred to as PGPIC CVC Fund (PGPIC CVC Fund) is a subsidiary of the Persian Gulf Petrochemical Industries Company, which is specifically dedicated to investing in innovative projects within areas related to the broader petrochemical industry.
Such funds, commonly known as Corporate Venture Capital (CVC), are typically established by large corporations or industrial groups to systematically support innovation and technological advancement. The aim is to improve processes and generate added value. Venture capital (VC) is one of the key financial instruments employed by these entities.
Objectives and Key Features of the PGPIC CVC Fund
1. Supporting Innovation in Petrochemical Industry
PGPIC CVC Fund aims to invest in innovative technologies and ideas that can enhance the efficiency and sustainability of the petrochemical and energy sectors.
2. Investment in Startups and Emerging Companies
The fund seeks to provide financial and managerial support to startups and innovation-driven companies operating in areas such as petrochemicals, renewable energy, recycling, chemical industries, and digitalization.
3. Creating Added Value and Competitive Advantage
In addition to pursuing profitability and financial returns, the fund is committed to facilitating innovation processes and improving technologies within the petrochemical sector. It also aims to generate competitive advantages for the PGPIC and its affiliated companies.
4. Developing the Technology and Industry Ecosystem
In response to the growing needs of the petrochemical and energy sectors, the PGPIC CVC Fund serves as a strategic financial instrument to strengthen the innovation ecosystem. It strives to introduce cutting-edge technologies into the petrochemical and energy industries.
Operational Process and Structure of the PGPIC CVC Fund
1. Identification and Sourcing of Innovative Projects
The PGPIC CVC Fund identifies and receives innovative projects through public calls for proposals, social media platforms, and partnerships with academic and industrial institutions.
2. Evaluation and Approval of Projects
Upon receiving proposals, the fund conducts thorough evaluations from technical, financial, and commercial perspectives. Approved projects are prepared for the investment phase.
3. Investment and Support
After project approval, the fund allocates its investment to the selected initiatives. In addition to financial support, technical and managerial consulting may also be provided.
4. Oversight and Monitoring
The fund ensures the successful implementation and commercialization of technologies through established monitoring and governance processes.
Vision and Mission of the PGPIC CVC Fund
Vision: To invest in startups, innovations, and technologies with the potential for rapid growth and impactful contributions to the petrochemical and energy sectors.
Mission: To identify and support innovative businesses, facilitate industrial development, and accelerate transformation in the fields of petrochemicals, energy, recycling, and advanced technologies across the subsidiaries of the PGPIC.
Investment Process of the PGPIC CVC Fund
1. Call for Proposals and Project Sourcing: Innovative projects and startups are sourced through open calls, websites, and collaborative networks.
2. Preliminary Evaluation of Proposals: Submitted proposals are referred to the Business Development Unit for initial evaluation and screening.
3. First Committee Review: Following the initial assessment, proposals are presented to the First Review Committee. At this stage, proposals that do not align with the fund’s strategic priorities may be rejected.
4. Business Plan (BP) Development: If a proposal is approved, a detailed BP is developed by the Business Development Unit.
5. Second Committee Review: The completed business plan is reviewed by the Second Review Committee for in-depth evaluation.
6. Final Decision: The final decision regarding investment allocation is made by the Investment Committee or the Investment Management Unit.
7. Contract Signing and Oversight: Once approved, an investment agreement is drafted and executed. The Investment Management Unit then continuously monitors project performance and conducts necessary evaluations.
Financial Resources of the Fund
PGPIC CVC Fund’s financial resources are primarily provided by subsidiaries of the holding and other affiliated investors.
Investment Priorities
The PGPIC CVC Fund primarily invests in projects operating in the following areas:
- Advanced Chemical Technologies
- Renewable and Sustainable Energy
- Artificial Intelligence and Digitalization
- Recycling Management and Circular Economy
- Innovative Technologies in the Petrochemical and Energy Sectors
PGPIC CVC Fund Shareholders
- Persian Gulf Petrochemical Industries Company (Parent Company)
- Arvand Petrochemical Company
- Bandar Imam Petrochemical Company
- Shahid Tondgoyan Petrochemical Company
- Fajr Energy Persian Gulf Company
PGPIC CVC Fund Mission
1. Supporting Innovation in the Petrochemical Industry
The PGPIC CVC Fund seeks to identify, support, and invest in startups and innovative companies across various fields of the petrochemical, energy, and chemical industries. The fund focuses on new ideas and technologies that can help advance and upgrade the industry.
2. Developing Sustainable and Modern Technologies
Another key mission area is the promotion of modern and sustainable technologies within the petrochemical and energy sectors. This includes advanced technologies in recycling, water and wastewater treatment, environmental pollution reduction, and enhancing the efficiency of industrial processes.
3. Creating an Innovation Ecosystem and Collaborating with Other Entities
The CVC Fund aims to build and strengthen an innovation ecosystem that fosters both domestic and international collaboration. These partnerships may include universities, research centers, and other capital funds, with the shared goal of advancing the petrochemical and energy industries.
4. Facilitating Commercialization Processes
A further objective of the fund is to support the commercialization of scientific and research achievements within the petrochemical sector. The fund helps companies in bringing their innovative projects to market and achieving successful commercialization.
5. Enhancing Value Creation in the Petrochemical Industry
The CVC Fund aims to invest in technologies that can generate significant added value for the country’s petrochemical industry.
This added value may take the form of increased productivity, cost reduction or improved product quality.
Vision of PGPIC CVC Fund
Our vision is to become a leading supporter of innovation and sustainable development in the petrochemical industry and other related industries, through strategic investment in innovative companies and advanced technologies. As a pioneering entity in the venture capital ecosystem, PGPIC CVC Fund aims to establish a strong support and empowerment network for startups and emerging companies across various sectors, including chemical technologies, sustainable energy, recycling, and industrial digitalization.
We seek strategic partnerships with entrepreneurs and visionaries capable of driving transformative change in the petrochemical industry and beyond, contributing to the advancement of novel and sustainable technologies.
Focusing on long-term value creation, PGPIC CVC Fund will contribute to sustainable development and national and regional economic growth. It will be recognized as a driving force for expanding technological innovation in the petrochemical industry and related industries.
Our Competitive Advantage
PGPIC CVC Fund holds several key features that distinguish it from other venture capital funds. These strengths play a crucial role in attracting startups and innovative companies, particularly in industries related to petrochemicals and energy. Below are some of the fund’s most important competitive advantages:
1. Support for Strategic and Key Industries
- The CVC Fund places strong emphasis on the petrochemical and energy sectors, which are considered core and strategic industries in Iran. This focus enables the fund to identify high-potential investment opportunities in projects with significant growth prospects and impact.
- This advantage is particularly appealing to startups and companies working on emerging technologies in petrochemicals, renewable energy, and the circular economy.
2. Strong Ecosystem and Communication Network
- As one of Iran’s largest and most reputable industrial groups, the PGPIC offers an extensive network of industrial and commercial connections. This network can provide valuable collaboration and growth opportunities for startups and innovative businesses.
- The CVC Fund grants access to this network, helping investee companies connect with human capital, technical and business consulting, and even international export markets.
3. Access to Financial Resources and Market Entry
- Investment from the Persian Gulf CVC Fund allows early-stage companies in petrochemical- and energy-related sectors to access funding and enter new markets to scale their innovative technologies.
- The CVC fund reduces financial risks by offering long-term financing and active participation in project development, facilitating growth and success for startups.
4. Support for Technology Development and Innovation
- Beyond funding, the CVC Fund provides access to business and management support services. These include technical assistance in areas such as advanced technologies, process optimization, and resource management.
- This technical support is particularly valuable for startups and early-stage companies that require specialized advisory services to grow effectively.
5. Project-Based Investment Portfolio Formation
- The CVC Fund helps investee projects and companies leverage third-party resources, including financing from other public and private institutions, government support, and legal incentives such as tax credits. This is particularly important for R&D projects in advanced petrochemical and energy technologies.
- This aligns with the country’s petrochemical industry development policies.
6. Access to a Stable Market
- The Persian Gulf Petrochemical Industries Company is one of the largest and most influential industrial groups in Iran. Its investment and endorsement can provide innovative companies with access to a large share of the domestic petrochemical market.
- The brand’s credibility facilitates market entry, customer acquisition, partner negotiations, and access to additional financing sources.
7. Diversified Portfolio and Risk Management
- By investing in a range of sectors within petrochemicals, energy, and advanced technologies, the CVC Fund can manage its investment risks effectively. This approach helps reduce exposure for startups and innovative companies.
- This investment diversification protects the fund against market volatility and economic fluctuations.
8. Access to Infrastructure and Resources
- Investee companies can utilize the industrial and production infrastructure of the Persian Gulf Petrochemical group to pilot and test their products.
- This capability accelerates and streamlines the development of innovative products.
In summary, the competitive advantage of the PGPIC CVC Fund lies in its combination of industrial experience, financial support, access to commercial networks, and specialized resources. The fund offers startups and innovative companies in the petrochemical and energy sectors the opportunity to grow rapidly and gain access to large domestic and international markets.
Fields of Activity
As a venture capital fund, PGPIC CVC Fund operates in areas of innovation and advanced technologies within the petrochemical industry and other related sectors. The fund’s key focus areas include:
1. Advanced Technologies in the Petrochemical Industry
- Development of New Production Methods: Investment in companies working on innovative chemical technologies such as green chemical production, energy-efficient processes, and improvement of petrochemical manufacturing techniques.
- Green Petrochemicals: Creating solutions for producing chemicals with minimal environmental impact, including recycling processes and the use of renewable resources.
- Energy Efficiency and Consumption Reduction: Application of modern technologies to optimize energy use in petrochemical processes.
2. Innovative Energy Technologies
- Renewable Energy: Investment in projects related to solar, wind, and other renewable energy sources.
- Energy Management and Storage: Development and funding of advanced energy storage systems, such as high-performance batteries and smart energy management technologies.
3. Digital Technologies and Artificial Intelligence (AI)
- Artificial Intelligence in Petrochemicals: Utilizing AI and machine learning to optimize industrial processes, forecast demand, and reduce operational costs.
- Internet of Things (IoT): Implementing real-time monitoring and control of production processes through IoT systems to enhance efficiency.
- Big Data: Leveraging advanced data analytics for better forecasting, process optimization, and informed decision-making.
4. Circular Economy and Recycling
- Waste Management and Recycling: Investment in technologies focused on recycling raw materials in the petrochemical sector.
- Recyclable and Biodegradable Plastics: Support for projects aiming to produce biodegradable plastics and reduce environmental pollution caused by plastic waste.
5. Advanced Materials and Nanotechnology
- Production of Novel Materials: Investment in nanotechnology for producing materials with unique properties applicable to petrochemical, energy, and electronics industries.
- Advanced Materials for Petrochemicals: Development and utilization of materials with special capabilities such as high temperature and pressure resistance in petrochemical applications.
6. Process Management and Optimization
- Industrial Automation: Investment in automation solutions to boost productivity and reduce costs in the petrochemical and chemical industries.
- Supply Chain Management and Optimization: Using innovative technologies to streamline supply chains and reduce waste throughout production and distribution.
7. Environment and Social Responsibility
- Reducing Environmental Impact: Supporting technological projects aimed at minimizing the environmental footprint of chemical and petrochemical industries.
- Environmental and Social Projects: Investment in initiatives that contribute to improved social and environmental conditions in various regions.
PGPIC CVC Fund actively seeks to identify and support innovative technologies and entrepreneurs that have the potential to transform the petrochemical, energy, and chemical industries.