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Asia & Australasia: June 2003

Burrill looks to invest in Australia, Malaysian start-ups to receive seed capital and Walden cuts fund size again…

Walden International trims fund down to $600m
Walden International has reduced the size of its PacVen V fund to $600m from its target of $750m. This follows a cut last year from the original target of $1bn. The company is making the move because of lower valuations and because investments are being made into more capital-efficient businesses that require less funding. It will aim to hold between 50 and 60 companies in its portfolio, taking an average of a 20 per cent stake in each. Walden has invested in 23 companies so far from this fund.
AVCJ June 2003

Burrill & Co ventures down under
Burrill & Co, a US based biotechnology-focused venture capital firm, has taken advantage of reforms to Australia's venture capital tax laws by launching a $200m fund for investments in local and off-shore life sciences companies. Of the $200m being raised, $100m will be committed to investing in Australian companies. The decision comes in the wake of reforms to the country's venture capital tax laws, including the removal of several hurdles for venture capital investors and the extension of a capital gains tax exemption on venture capital investments.
The Deal 26.6.03

PwC survey shows China out in front…
A recent survey from PricewaterhouseCoopers shows that private equity investors view China as the premier investment destination in the Asia Pacific region. The sample of 84 regional funds revealed that 60 per cent of respondents see Chinese companies as the targets of choice, knocking South Korea off the top spot. The change in fortune for the country would appear to be as a result of recent reforms to its venture capital regulations and its entry to the World Trade Organisation. However, investors are still cautious about investing in the country. Their three main concerns are a lack of transparency and reliability of information, difficult exit conditions and corporate governance-related issues.
AVCJ June 2003

QUALCOMM sets aside $100m for investments in Asia
QUALCOMM, the US-based wireless company, has committed $100m to invest in early and mid-stage technology companies in China. The capital is part of a $500m China-focused investment plan to develop CDMA wireless products worldwide. The company will focus on CDMA-based communications technology and devices, application and platform developers and enabling and complementary technology providers. The investments will be made by the China team of QUALCOMM Ventures and will range from $2m for early-stage and $5m for mid-stage.
AVCJ June 2003

Australian DB Capital Partners launches new private equity fund
DB Capital Partners, the Australian private equity arm of Deutsche Asset Management, has launched its second private equity fund. Deutsche Private Equity Fund II is seeking to raise A$175m from both local and international investors. The firm's investment strategy places a primary emphasis on expansion capital opportunities involving a broad spread of industries in Australia. DPEF II has been launched on the back of the Deutsche Private Equity Fund I, which was released to market in December 1999. DPEFI has invested in ten companies including Wizard Mortgage Corporation, CEA Technologies, Enterix, Miranda Wines and Hudson Building Supplies.
AltAssets 17.6.03

Malaysian start-ups to receive funding from MAVCAP
Start-up companies in Malaysia are set to benefit from venture investment as Malaysia Venture Capital Management, a government backed venture capital firm, has committed $53m to seed at least 70 companies in the region. The investment programme is designed to spur the growth of the local IT industry. The firm will invest $15.9m this year and the remaining $37.1m in 2004.
AVCJ June 2003