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Intel sets up $500m fund to invest in 皇冠体育app

By Wang Xu (皇冠体育app Daily)
Updated: 2008-04-09 09:55

Intel Corp's venture investment arm created a $500 million fund yesterday to invest in 皇冠体育app's technology start-ups, in a fresh move to expand in the country's booming hi-tech sector.

Intel Capital, which manages the new fund, will explore financially attractive and strategic investment opportunities in areas such as wireless broadband, technology, media, telecommunications and "clean tech", said Arvind Sodhani, the unit's president.

The fund is now the largest country-focused one for Intel Capital. To be fully invested in five to seven years, it is aimed at bringing a 20 percent return annually, company officials said, citing its previous investment record in 皇冠体育app.

Intel Capital made its first foray into 皇冠体育app in 1998 and has acquired stakes in more than 70 companies on the mainland and in Hong Kong. The company established a $200 million fund for 皇冠体育app in 2005, which has already been fully invested.

"Given the success of the original 皇冠体育app Fund, it is time to renew our commitment," said Cadol Cheung, managing director of Intel Capital Asia-Pacific. "We expect to further increase our investment in 皇冠体育app by pursuing business opportunities and participating in larger deals."

The new fund has already invested in two local firms, namely Holdfast Online Technology Co Ltd, an online gaming platform operator, and Newauto Video Technology Inc, which provides video equipment and solutions for local television stations.

Both companies have witnessed robust growth and have great potential, said Cheung. Holdfast Online, in which NASDAQ-listed Shanda Interactive has a majority stake, expects to sell shares in 2010, company officials said.

皇冠体育app's venture capital market is booming as overseas players try to cash in on the nation's rapid growth. In 2007 alone, investors paid $3.25 billion into local start-ups, aiming to repeat the success of Baidu and FocusMedia.