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.