China VCs raise $3bn in second quarter

Foreign funds have largest share Written by Simon Burns VC firms prefer to invest either in start-ups or in elite, mature enterprises Chinese venture capital firms had a record $3bn in funds available to invest during the second quarter of 2008, according to a new survey. More than $1.2bn of that was invested in local firms, with IT and hi-tech companies receiving more than half, according to the Zero2IPO Group, a local venture capital consultancy. During the quarter, 29 local and foreign venture capital firms set up a total of 40 VC funds, the company reported. IT related investments were up compared to the previous quarter. Almost half the investments were of $1m or more. Thirteen major deals that involved an investment of $20m or more comprised almost half of the total amount invested. "Expansion-stage and late-stage... [read full story]