Telecoms firms win lion's share of region investment
Friday, August 24, 2001
DENISE TSANG
About US$2.44 billion in funding poured into the Asia-Pacific venture capital market during the first seven months of the year, according to a Thomson Financial survey.
The money flowed to 205 companies in the Asia-Pacific with 213 rounds of financing in different stages, the financial information provider said. Venture capitalists were aggressive in the region, with 225 funds run by 197 firms taking part in financing Asia-Pacific private companies.
The telecommunications and media sector alone absorbed US$1.3 billion funding, more than half the total.
Funding to the sector represented a 37.58 per cent jump from the same period last year.
The largest three reported investments in the region involved India-based telecoms firm Bharti Televentures, the mainland's No 5 telecoms carrier China Netcom, and Thrunet of South Korea.
China Netcom raised US$325 million in the first seven months of the year from Goldman Sachs, Bank of China, News Corp and a number of individual investors. The telecoms carrier has been expanding its network around China to facilitate Internet access.
Bharti raised US$460 million and Thrunet US$240 million.
As a result of Bharti's large-scale fund-raising exercise, the volume of interest in Indian companies surpassed that of the rest of the region.
India accounted for 28 per cent, or US$694.9 million, of the total.
China came next with US$533.2 million and then Korea with US$406.6 million.
Australia saw the largest number of transactions, with 107 rounds of funding.
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