Former Google exec Kai-Fu Lee has founded a $115 million investment fund to fuel high-tech Chinese start-ups. Named "Innovation Works," it is backed by a group of venture capital funds and private investors. YouTube co-founder Steve Chen. Lee will sit as the chairman and CEO, after resigning from his duties at Google last week.

Others parties involved include WI Harper Group, Foxconn and Legend Group, Lenovo's parent company. Innovation Works will use the money to assist emerging entrepreneurs with creating companies that could eventually make it to the stock market or be sold. The fund will focus on China's Internet, mobile Internet and cloud computing industries.

Innovation Works is launching in a market that lacks entrepreneurial skills, according to Lee. The fund aims to cultivate 50 companies and train 500 people in 10 years. Lee hopes that of those 50, at least one will become a "world-class company."