(Yicai) July 30 -- Dassault Systèmes plans to set up a venture capital fund worth at least EUR100 million (USD115.5 million) by the end of the year to invest in Chinese startups, Chief Executive Pascal Daloz told Yicai after the French software firm opened its first innovation lab in China.

Startups represent the future direction of technological development, Daloz said in an interview in Shanghai today. It is startups, rather than conventional enterprises, that usually come up with original innovations so embracing startups means embracing the future, he added, noting that Dassault itself began as a startup 45 years ago.

The Vélizy-Villacoublay-based firm, which provides software for automakers, aerospace, industrial, and medical companies, launched its first 3DExperience innovation lab and startup accelerator in China yesterday. Located in Shanghai, the facility is Dassault’s fifth such lab globally and is designed to bolster support for Chinese startups.

The lab is open to startups in advanced manufacturing, life sciences, new materials, and green energy. Participants will gain access to Dassault’s artificial intelligence-powered digital twin platform to accelerate innovation and will have the opportunity to collaborate with researchers from Dassault’s other labs in France, the United States, Germany, and India to bring their research to global markets.

China is becoming a cradle of global innovation, and the rise of local startups cannot be overlooked by international tech companies, Daloz said. He added that China’s leadership in AI applications makes it likely to lead global development in this area.

Shanghai was chosen as the first Chinese site for a 3DExperience lab because it serves as Dassault’s Asia-Pacific regional headquarters. The city has also laid a strong foundation for the company’s ecosystem growth and provided access to high-quality local research and development talent, Daloz concluded.

Editors: Tang Shihua, Emmi Laine