A group of US, Chinese, and Israeli investors have set up WBP Venture Partners, which will raise a fund to invest $50 million in high-tech Israeli companies seeking to do business in China. The fund was founded by B&P Management (China), headed by David Fuchs, Israel's PTl Group Ltd., headed by CEO Zvi Shalgo, and Wujin Economic Zone (WEZ), in Changzhou, one of the most active Chinese cities collaborating with Israeli companies. Fuchs and Shalgo will serve as WBP's managing partners.
WBP Venture Partners is seeking to raise an initial 300 million renmibi ($50 million), to invest in Israeli companies that will operate in China, with an option to a subsequent closing. The average investment in a company will be $2 million. The fund will focus on the life sciences and medical devices, cleantech, telecommunications and mobile, online media, and industrial technologies.
Portfolio companies will get financial strategy assistance, including an exit strategy for listings on the New York, Hong Kong, London, or Shanghai stock exchanges, or acquisition.
"Partnering with PTL Group enables us realize our joint vision regarding the operations of Israeli companies in the Chinese market. I really believe in this unique model, combining investments with a platform of local services, which is an exception in the market," said Fuchs, adding "Technology and innovation are an important advantage, but not sufficient to succeed in China. I've seen American companies fail in China because they lacked local support of the kind the new fund is offering."
"Our objective is to enable Israeli and foreign companies penetrate the Chinese market and grow while preserving their technology and controlling their own business. Experience has shown that a company must have a local team to develop its business in China, as a crucial infrastructure enabling growth and expansion," said Shlago.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2014
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