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VC firm seeks start-up opportunities

By Li Weitao (China Daily)
Updated: 2005-08-31 06:03

BlueRun Ventures, a global venture capital (VC) fund with US$1 billion under its management, is seeking more investment opportunities in Chinese technology start-ups.

The company, which focuses on early stage companies in the information technology (IT), mobile, and consumer markets, yesterday said it opened a new office in Shanghai as part of its expansion drive in China.

The world's top mobile phone maker Nokia and some top global institutional investors are the major investors in BlueRun Ventures.

BlueRun's expansion underlines the growing desire of global communications firms to inject venture funds in China to foster local technology start-ups which could eventually benefit communications firms.

"China has not only become a dynamic region for innovation but is also increasingly the first entry market for technology start-up companies," said Jui Tan, partner of BlueRun Ventures.

By launching the Shanghai office, "we hope to expand our investments in best-of-breed technology companies in China and also help our portfolio companies in the US and Europe to develop business partnerships in China," Tan said.

Also, Nokia yesterday announced that Nokia Ventures Organization Asia (NVO Asia), Nokia's corporate venture arm in Asia, would has Shanghai as its headquarters.

NVO Asia was established in October 2003 in Shanghai, where it pursues and develops new business opportunities and seeks to develop collaborative models with Chinese entrepreneurs.

In the past years, the VC arms of major global communications firms have been beefing up expansion in China.

The VC unit of Germany's Siemens has already invested in some Chinese technology start-ups.

US communications firm Qualcomm has earmarked US$100 million in venture capital for the Chinese market. It has injected venture funds in a number of Chinese start-ups together with institutional investors.

Chinese mobile phone design house Techfaith Wireless Communications Technology Ltd, backed by Qualcomm, got listed in NASDAQ.

Fostering technology start-ups is becoming increasingly vital for major communications firms in building complete technology and supply chains.

"Facilitating innovation growth in China through partnership is an important part of Nokia's mission in China," said David Ho, president of Nokia China.

"Since 2003, NVO Asia has not only contributed to Nokia's renewal but also benefited the local partners in the Chinese mobile ecosystem."

During the past two years, NVO Asia said it has achieved solid progress in new domains such as mobile navigation.

Nokia last week launched a wireless GPS (global positioning system) solution, which could offer GPS services to users of mobile phones, PCs, or PDAs enabled with Bluetooth wireless technology.

The mobile GPS solution is a joint effort of a global GPS solution provider and a Chinese technology start-up based in Shanghai, which is backed by NVO Asia.

BlueRun usually invests globally as a single fund in best-of-breed technologies with initial investment ranging from US$2 million to US$8 million.

(China Daily 08/31/2005 page10)