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Asia: December 2001

Dramatic fall in Japanese VC but Indian venture activity at an all-time high...

VC slump in Japan
The experience of Japan's top five VC investors suggests a steep decline in investment. Between April and September, the amount invested fell to Y31.1bn - a decrease of 43 per cent from the same period last year. Jafco, NIF Ventures, SMBC capital, Orix Capital and Japan Asia Investment have all cut spending. Jafco blamed the information technology recession and a consequent drop in internet-related venture start-ups for its dramatic cutbacks.
Venturedome 18.12.01

Singapore is possible gateway into China for Indian IT companies
Indian IT companies can enter China via Singapore, taking advantage of Singapore's cultural links to both China and India, according to speakers at a venture capital seminar in Bombay this month. Panelists at the seminar said that Indian IT service companies could take advantage of the Chinese and Singapore governments' drive to popularise IT usage. The legal, financial and telecommunications infrastructure in Singapore were also stated as being attractive to Indian companies looking to set up there.
SiliconValley.com 12.12.01

Indian venture activity at all time high
The number of venture firms in India has quadrupled over the last two years and the number of foreign VCs has tripled in the same period, according to figures unveiled at an investment seminar in Bombay. There are now 36 active Indian venture capital funds, up from eight funds two years ago and the number of foreign funds has increased from 25 to 75. Professor Rafiq Dossani of Stanford University recommended that India follow the example set by the US in 1979' when it allowed pension and insurance funds to start investing in venture capital.
Venturedome 5.12.01

Dragonventure's new link to Chinese VC firm
Silicon Valley VC firm DragonVenture has strengthened ties with China by signing an agreement with Canton Venture Capital. DragonVenture agreed to assist and manage trans-pacific mergers and acquisitions. Both firms will target publicly traded companies that want to invest in or acquire growing China-based start-up companies and each agreed to provide up to $5m in capital jointly for each completed transaction.
TheDeal.com 18.12.01

New Indian VC firm launched
The Indian Mirchandani family have launched Cocoon Ventures - a VC firm that will target new economy start-ups. The family already owns Mirc Electronics but are now taking advantage of a less competitive environment after the dot.com bubble burst. The company had already made two investments in Mumbai and has other projects in the pipeline.
Venturedome 18.12.01