China - VC - NYT article

Continued emphasis on China ....

China - VC - NYT article

www.nytimes.com

Venture Firm and Ally PlanChina Fund

By DAVID BARBOZASHANGHAI,

July 19 - Accel Partners,one of Silicon Valley's biggestventure capital firms, said Tuesdaythat it would team up with theventure capital arm of theInternational Data Group, theAmerican publisher and mediacompany, to create a $250 millionfund to invest in Chinese technologycompanies.The move is one of the biggest yet asSilicon Valley venture capital firmsenter China's fast-growing, butincreasingly competitive, technologymarket.Like other foreign investors,American venture capitalists andprivate equity firms have beenrushing into China over the last fewyears in search of the Chineseequivalents of Yahoo."There's no shortage of capitalsloshing around the markets rightnow," said Charles C. Comey, amanaging partner in the Shanghaioffice of the Morrison Foerster firm,which advises companies on venturecapital and private equityinvestments.Some analysts here, however, arealready warning that too muchspeculative money is flowing intoChina, driving up the value of Chinesetechnology companies, and thatmany foreign investors will probablyface huge losses in the coming years.But some impressive success storiesin the last year have helped fuel theChina investing frenzy, particularlybecause China's technology, gaming,Internet and mobile telephonemarkets are booming.This year, for instance, the SoftbankAsia Infrastructure Fund sold its stakein Shanda Interactive Entertainment,the gaming company based inShanghai, for more than $500 millionafter the company was listed on theNasdaq stock market in 2004.Softbank had invested about $40million in Shanda in 2003.Doll Capital Management, anotherSilicon Valley venture capital firm,has also done well by investing inmore than half a dozen Chinesecompanies.Analysts said that Accel might beseeking the expertise of IDG'sventure capital arm, which hasalready invested in more than 140Chinese companies in the last decade.Last year, venture capital firmsinvested nearly $1.3 billion, up nearly30 percent from 2003, according toZero2IPO, a venture capital researchand consulting company based inBeijing.

Comments

[Angelina]

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I finally met Elena by the pictures you posted!

Regards to everybody.

I will see you guys soon through here...

ciao!