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Asia and Australia: October 2001

Trouble looms for Asian venture funds, VC investments in India plummet and new DragonVenture fund for China…..

Venture capitalists in Asia expect a difficult year ahead
Venture capitalists in Asia have voiced their concerns that the markets will be extremely tough over the next year, following the attacks on September the 11th. As the value of many investments fall, many VCs are preparing themselves for a bumpy ride as good investment prospects dry up according to the Wall Sreett Journal 25.10.01

Indian VC investments down from last year
VC investments in India fell in the period from January to March 2001 to $50m from $92m in the same period last year. This drop coincides with a worldwide decline in VC investments but has been particularly significant in India in business-to-consumer and internet solutions ventures. Technology enterprises and internet-related companies have attracted the majority of VC funding in India.
The Financial Express 17.10.01

New technology stock market urgently needed in China
China's high-growth start-up sector will be put at risk if the new Nasdaq-style stock market is not launched in the near future say experts. The small and medium-sized enterprises in China are a significant source of economic growth but at the moment, they cannot find finance. They say that if the market is not launched soon, it will slow the Chinese economy even further as it suffers from falling export levels.
Venturedome 17.10.01

Calpers to invest $75m in Thai private equity fund
California Public Employees' Retirement System (Calpers) has made a $75m investment in the new Thailand Equity Fund as part of its strategy to increase its exposure to both private equity and emerging markets. The $250m fund, backed by the Thai finance ministry, plans to make investments in well established Thai companies that need extra capital for growth and expansion spread across a broad range of sectors.
AltAssets 31.10.01

DragonVenture to co-manage new fund with Chinese VC firm
California-based DragonVenture is to co-manage a $60m VC fund with Shenzhen Venture Capital Company, China's biggest venture capital firm. The fund will focus on software, telecommunications internet infrastructure and technology companies in China.
PrivateEquityCentral.net 17.10.01

Australian government reforms boost VC industry
The Australian Venture Capital Association (AVCAL) has given its whole-hearted support to the government's latest package of reforms designed to stimulate the industry. It predicts that the new initiative will attract an extra $1bn in foreign investment into Australian funds and add $350m to the country's gross domestic product. The government's package contains tax concessions to non-resident investors, including endowment funds and venture capital fund of funds vehicles.
AltAssets 15.10.01

$50m fund for Japanese university spin-offs
San Francisco and Tokyo-based EntreNest is raising its first fund, EntreNest High-Impact Technology Fund, with a target of $50m. It will invest mainly in technology companies that have been spun out from Japanese research centres and universities.
PrivateEquityCentral.net 23.10.01