December 24th, 2011Posted by admin
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hackNYQiming Venture Partners is one of the many venture capital funds rushing to invest in the Chinese market with a new $450 million fund and plans to raise an additional $108 million fund. However, many analysts are warning that the China venture areas is getting overheated and is bound to bottom out again in a few years.
Even venture fund managers admit that some of the multiples being applied to ecommerce companies in particular will require the companies to grow significantly to justify them. In the social networking space there is an increasing awareness by investors that they need to pay close attention to the quality of revenue and operations at a given company, and not just their end user numbers. However, they always point to the long term value of being a leader in China to justify the sky-high valuations, although it may be a rocky road to get to their.
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November 17th, 2011Posted by admin
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ukhomeofficeIn new proposals to advance the European Union single market and spur economic growth, venture-capital company in the EU may be granted a "passport" to invest anywhere in the region. Funds that are established in one member state would be allowed to invest in any other member state under the proposal.
The EU agreed last year to give private equity managers access to investors across the region with a single registration in return for signing up to transparency rules. The new proposals would create a similar arrangement for VC firms that support businesses at early development stages. The idea is to lower operating costs and risks for VC firms, leading to more capital flowing into innovate small businesses. The end of 2012 has been designated as a deadline by the EU Financial Services Commissioner to implement new measures to improve the free movement of goods, services and capital in the EU.
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November 17th, 2011Posted by admin
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smemon87Over a decade since the dot.com mania of the first internet bubble boomed and faded, and venture capital is once again rushing back to internet startup companies in the hope of finding the next Facebook, Groupon or Twitter. More than $5 billion of venture capital investment flowed into nascent internet companies in the first four months of this year alone.
This is still small compared to the boom years, but it is more then any year since 2000, right before that bubble burst. The latest frenzy does bear some similarities to the previous web bubble, including exuberance over "concept" start-ups that have yet to launch sites and intense competition among backers to place bets in hot areas like social media. Entrepreneurs say they are enjoying more leverage with investors and that they have their pick of potential backers. Many that aren't even seeking to raise funds are seeing the VC's knocking on their doors with propositions.
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