Former Google.com China head Lee Kai-Fu has transformed into an angel investor with the recent launch of his new technology-focused investment company Innovation Works, China Daily reports.

Mr Lee resigned from Google last week after gathering $115 million to start the new firm, the publication said. Angel investors provide capital for startup companies and they have become an important source of financing in the current difficult environment for raising conventional debt financing.

"Unlike major venture capitalists, there are only a few angel investors in China," Mr Lee was quoted to have said. "Young Chinese entrepreneurs, therefore, are facing many challenges," Mr Lee added.

The new company is a business creation outlet aimed at helping new Chinese entrepreneurs gain funding to develop their ventures. Innovation Works will initially focus on technologies related to the Internet, mobile Internet, and cloud computing. Supporting the endeavor are WI Harper Group, the lead venture capital investor, Foxconn Technology, and entrepreneur and YouTube co-founder Steve Chen, among others.