Intel puts $500M toward 2nd China fund
By Ann Steffora Mutschler, Senior Editor -- 4/8/2008
Intel Corp’s global investment organization, Intel Capital, announced this morning that it has established a second China investment fund. The $500 million Intel Capital China Technology Fund II will be used for investments in wireless broadband, technology, media, telecommunications, and “clean tech.”
“The establishment of our China Technology Fund II, which is more than double the size of the original China Fund is the ideal way to celebrate 10 years of Intel Capital activity in China's vibrant economy,” Arvind Sodhani, president of Intel Capital, said in a statement.
“Since 1998, Intel Capital has invested in more than 70 companies across China and Hong Kong. We aim to foster innovation and local entrepreneurship, while enriching the technical capabilities and global competitiveness of technology companies in the region,” he added.
Two new investments with this new fund are Holdfast Online Technology Co Ltd, which provides a platform to host third-party operator LAN-based or console games so gamers can play against each other in a wide area network, and Newauto Video Technology Inc, which manufactures and sells video equipment, network solutions, and system integrations for TV stations across China. Newauto also provides digital content editing and sports program live-broadcasting services and is a service provider for the 2008 Beijing Olympics, Intel noted.
“Intel Capital expects to further increase our investment in China by pursuing business opportunities and participating in larger deals with an eye on leading rounds,” Cheung said.
Intel Capital’s first $200 million China technology fund, established in 2005, has been fully invested in local Chinese companies and was intended to help Chinese businesses nurture important technologies and develop innovative products.
Examples of Intel's first China Fund company investments include Neusoft Group, Supcon Group, A8 Music, Chinacache International, Chipsbank Microelectronics, DAC, HiSoft Technology International, Kingsoft, Legend Silicon, Montage Technology, and Palm Commerce. Notable liquidity events involving portfolio companies from the first fund include Actions Semiconductor, Kingsoft, and Neusoft Group.
Intel is not alone in setting up a venture fund in the Asia-Pacific region. Xilinx Inc established a $75 million Asian venture fund in November 2006 to accelerate programmable systems in the Asia-Pacific region -- a move that the company believed would both seed the regional market for Xilinx’s programmable logic devices and give the company an early peak at new developments there.
For more on doing business in China, check out “Fast Guide to China: Four key questions to ask before taking the plunge.”
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