[Posted on November 14, 2007 - 5:27 PM]
E-mail
del.icio.us
Technorati
Digg
The rush into Chinese venture capital apparently has slowed somewhat, with AltAssets.com reporting on Ernst & Young and Dow Jones Venture One statistics showing just a 5% increase in investment in the third quarter of 2007 over the same period of 2006. The report found VCs invested $677 million in 59 deals, with consumer, business services and retail landing the bulk of that, at $432 million.
Ernst & Young's China and Far East Venture Capital Advisory Group leader Bob Partridge said the driver for that investment continues to be the sheer growth in China's middle class and its increasing participation in the economy with the growth of new businesses and the consequent demand for services.
While investors focused on consumer and service investments, where capital barriers for entry are relatively low, traditional venture strongholds fared less well, with China's healthcare industry accounting for only four deals and $19 million in investment, and information technology landing $217 million in 24 deals. - Clifford Carlsen
See story from AltAssets.com
