Geographical location of the VC and Private Equity firm
Our statistical survey amongst our customers that are looking for Venture Capital financing show that many of them put a very strong emphasis on the geographical location of the VC company or the Private Equity firm.
With the business world developing
and the globalization, there are many firms that do not care
so much about the physical location of the company they invest
in, as long as it is a good and sustainable business. In fact,
the “Far Eastern” market has developed immensely
in recent years due to the aforementioned. For example, one
of our recent researches shows that many companies, such as
Intel, have invested millions of dollars in China.
Duane Kuang, director at Intel Capital China, has recently
indicated that Intel regards China as a significant hub of
investment activities for Intel, so they feel it is the right
time for them to have a dedicated fund investing in this market.
Intel has announced that: “The Intel Capital China Technology
Fund is a US$200 million investment program to help stimulate
local technological innovation and the continued growth of
China's IT industry. Investments will be made in Chinese technology
companies developing innovative hardware, software and services.”
Intel Capital has invested $4 billion in about 1,000 companies
in more than 30 countries since 1991. Today about 40% of Intel
Capital's $130 million in investments goes to non-U.S. companies,
significantly higher than the 5% share in 1998, the year the
company started investing in Asia. Asian companies received
almost half of the $52 million invested in non-U.S. companies
last year.
Kuang furthermore mentioned that Intel sees China as a “powerhouse”
for technology development and as an expansion market for
Intel products.
Another computer company that has
directed more money to the East is Microsoft.
Microsoft Hong Kong Limited and The University of Hong Kong's
Center for E-Commerce Infrastructure Development (CECID) a
few weeks ago announced a partnership to enhance efficiency
and growth of the local logistics sector, one of Hong Kong's
leading-edge industries, through the development of common
software protocols. Creating new opportunities for local independent
software vendors and companies throughout the logistics supply
chain
Anmar Alani, Director, said: “Microsoft is very pleased
to be involved in this R&D project with CECID as a way
to support the further development of the logistics industry,
with the promotion of an open standards-based environment
to accelerate cost savings and enhance industry-wide efficiency.”
This R&D initiative allows for the more cost-effective
development of logistics-specific applications in Hong Kong
and contributes to the growth of the Hong Kong economy.
”The growth of many logistics companies in Hong Kong is stymied by the current high cost of setting up to conduct business electronically, while the industry as a whole is disadvantaged by the lack of standards and infrastructure supporting data exchange between organizations.”
So, before you dismiss the possibility of finding an investor in a different city or a different country than your target geographical area, please remember that there are potentially millions of dollars waiting to be invested in your company in other geographical areas.