Chinese venture capital fund Shenzhen Capital Group (SCGC), has signed a joint venture agreement to inaugurate a new $80 million VC fund with Israel's PNV-New Management Co. (PNV NC).
SCGC is a major venture capital firm in China, managing over $200 million in funds. SCGC was formed and is supported by the local Shenzhen government along with major investors. SCGC president Dr. Chen Wei is also chairman of the Shenzhen Venture Capital Association.
Platinum and Neurone Ventures (PNV) is headquartered in Israel with offices in Singapore, Palo Alto, and Korea (the California and Korean offices relate to an affiliate fund). PNV NC managing partner Yigal Livne co-founded Neurone Ventures II in 2000, and was executive vice president of Tecnomatix Technologies (Nasdaq: TCNO).
The new fund, called China Israel Venture Capital (CIVC), will focus on introducing Israeli technologies into Chinese later-stage and pre-IPO technology companies. CIVC intends to focus on next generation communication technologies, semiconductors, IT, enterprise software, life sciences, and new materials. The joint venture allows the invested companies to benefit from China’s low-cost manufacturing and marketing channels.
SCGC and PNV NC have committed to invest over 10% of the fund’s total commitment. The partners have already raised $10 million, with the initial closing set at $20 million in the second quarter of 2005. The fund's partners expect relatively short exit times.
Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, April 20, 2005