Tradition helps VCI hit record high
Venture capital investment in China hit a record high last year, double the level of 2005, thanks to growing investment in traditional industries like clothes, training and machinery, a Beijing-based investment consultancy said yesterday.
The VC investment in China reached US$3.24 billion in 2007, 82.7 percent increase from a year ago. The broad IT sector remained the major sector attracting VC investment, according to Zero2IPO Ltd.
In 2007, VC firms invested in 440 businesses compared to 324 businesses a year previously. Investment in IT accounted for 42.6 percent of the total level, below the usual 50 percent line, according to Zero2IPO.
“The VC investment has issued industry diversification and more non-IT cases will be discovered this year,” Zero2IPO said in the statement.
Clean energy, education, healthcare and consumer-oriented services have become popular investments, according to VC partners from firms such as Sequoia Capital, Bain Capital and Carlyle Group.
Sequoia Capital China, which manages funds valued at US$1 billion, is interested in personal wealth management, clean technology and fast food chains, according to Zhang Fan, Sequoia Capital China’s managing partner.
IDG Technology Venture Investment plans to invest in car-related businesses. “We have contact with a foot massage chain and without doubt this is a promising market in China,” said Hugo Shong, general partner of IDG, which has invested in the Chamate restaurant chain.
In 2007, 242 Chinese firms were listed on domestic or overseas markets and 142 of them were involved with VC investment. Shanghai ranked the No. 2 region nationwide for VC investment.
Tags: China Investment, IPO