Dealflow Asia: JAFCO launches $178M tech fund; Sydney sprouts another Redfern seedling; Purple Drop in India picks up $4M; NetMap Analytics charts $10M in Australia; and more, including eVector and MuZus.
The new fund, called Jafco Asia Technology, will focus on six key technology sectors: life sciences, telecommunications, software, peripherals, semiconductors, and e-commerce. Investments will be made primarily in Singapore but also in Australia and Israel, as well as in North Asia, excluding Japan. With a fund investment range of $1M to $5M, the concentration is on early-stage rounds but also on some middle-stage financings. The contact person is Mr. Chew.
Several large Japanese corporations have invested in the fund, including Daiwa Bank, Hitachi, ITX, Itochu, Kanematsu Electronics, and Nomura Research International. These investors "retain a positive look in Asia" and are looking for "synergies" with Jafco Asia investee companies. Jafco Asia has had several prior funds, including Nomura Jafco East Asia Growth Fund, Japan Asia Development Trust, and Nomura Sino-Japanese Joint Venture Investment Fund.
COMMUNICATIONS EQUIPMENTREDFERN INTEGRATED OPTICShttp://www.redfernintegrated.comSydney, AustraliaFUNDING: $12MPRIOR FUNDING: N/AROUND: 1stCATEGORY: Optical componentsDESCRIPTION: Manufactures silica-on-silicon waveguides that integrate active and passive optical components.LEAD INVESTOR: Advent InternationalOTHER INVESTORS: Tallwood Venture Capital; TMT Ventures; Redfern PhotonicsTHE HERRING TAKE: This deal is another coup for Redfern Photonics, incubator for a group of optical networking companies at the Australian Technology Park in Sydney. Sparked by university research, Redfern Integrated Optics (RIO) promises to overhaul the way optical components are manufactured, extracting cost savings from what is still a highly manual process for most optical equipment makers. The new funds will go to product development, marketing, new manufacturing facilities, and the opening of a U.S. office. CEO Bruce Board says that RIO will form a new company structure incorporated in the U.S. by the middle of this year. An office will be set up in Silicon Valley, but R&D will continue in Australia. --D.C.
INTERACTIVE MEDIAPURPLE DROPhttp://www.purpledrop.comIndia; San Jose, CAFUNDING: $4MPRIOR FUNDING: N/AROUND: 1stCATEGORY: Interactive MediaDESCRIPTION: Provides software for high-end graphics, animation, and special effects for entertainment and interactive gaming.LEAD INVESTOR: PentaMedia GraphicsOTHER INVESTORS: N/ATHE HERRING TAKE: In a strategic move, Purple Drop has secured finance and technology support from a leading animation and special effects outfit, India's PentaMedia Graphics. Purple Drop's goal is to become a worldwide resource for high-end graphics, animation, and special effects for the $9 billion entertainment and interactive gaming business, says founder and CEO Ashok Desai. Mr. Desai is a 14-year veteran of Silicon Graphics, where he drove the U.S. company's operations in Asia during the 1990s. Through its alliance with PentaMedia, Purple Drop has access to state-of-the art production facilities, more than 1,000 creative professionals in the U.S. and Asia, and rights to an extensive selection of digital assets. The company is setting up offices in India, where it currently operates through alliance partners. --P.C.
SOFTWAREEVECTOR INFO MOBILEhttp://www.evectormobile.comBangalore, IndiaFUNDING: $10MPRIOR FUNDING: N/AROUND: 1stCATEGORY: SoftwareDESCRIPTION: Provides software products and services to facilitate mobile-enabled businesses and business applications.INVESTORS: Chase Capital Partners; EurIndia; Intel Capital; Reuters Greenhouse FundTHE HERRING TAKE: EVector designs software that makes it easier to access information on cell phones, PDAs, and digital TVs remotely -- a fast-growth area. Since Intel Capital is one of the investors, it's no surprise that the software is designed to support Intel's 64-bit chip. It should be available when Intel releases the processor shortly. The Intel connection gives eVector an edge. Deepak Shahdadpuri, vice president of the Reuters Greenhouse Fund for Asia, says, "EVector has created a robust platform with a future-proof technology base and leading-edge product roadmap." EVector's customers include Puerto Rico's telecom service provider, Centennial. EVector will use the funds to expand its marketing and sales team and to establish offices across Asia, Europe, and the U.S. --P.C.
NETMAP ANALYTICShttp://www.netmapanalytics.comWesterville, OH; and Sydney, AustraliaFUNDING: A$20M ($10M)PRIOR FUNDING: A$1M ($500K)ROUND: 2ndCATEGORY: Data analysis softwareDESCRIPTION: Software analyzes transactions to detect financial fraud, reduce retail theft, and manage connections across multiple networks with different protocols, including bandwidth.LEAD INVESTOR: Insurance Services OfficeOTHER INVESTORS: Meridian PacificTHE HERRING TAKE: NetMap made its name when its software helped put a prominent Sydney merchant banker in jail on fraud charges in 1999. NetMap's software scoured 10,000 banking transaction records, cross-checking the records with a list of 80,000 names. That kind of deep analysis has helped the company break into the U.S. insurance industry through an alliance with Insurance Services Office, a New York-based supplier of information and services to insurers. ISO's investment comes as NetMap restructures through a merger with another U.S. ally, Alta Analytics of Ohio. "This product has significant market presence in the U.S., but there is a lot of room for growth," says NetMap's CEO, Richard McLean. The company is targeting three markets where large volumes of data need to be sifted: financial fraud, retail theft, and customer information on marketing databases. --D.C.
ELEVATOR PITCHMYZUS, $6M TO $7Mhttp://www.myzus.comMumbai (formerly Bombay), IndiaTHE PITCH: "MyZus is a mobile Internet company based out of Bombay, India, and targeting a global audience. The company has developed a visual toolkit that lets telecom carriers, enterprises, and portals extend their Web front-ends to multiple wireless devices in less than 72 hours. The visual toolkit also makes the development of mobile Internet services easier, as it does away with having to write code, work with cookies, SSL, etc. The company raised a seed round of funds in early 2000 and has already bagged as customers the three largest telecom carriers in India. It also leverages its offshore development model to provide robust, scalable, and cost-effective end-to-end solutions for the global market. The company has a monthly burn rate of close to $15,000, is close to breaking even, and is looking for $6 million to $7 million to fund global expansion."WHY WE LIKE IT: Low burn rate and global aspirations.WHAT THEY'RE UP AGAINST: Proving the effectiveness of its toolkit compared to competitors.CONTACT: Roshan D'Silva, CEO, phone number: 91-9820147592
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This week's Dealflow Asia is reported and written by Gillian Beal, Partha Chari, David Crow, and Julie Landry. The Elevator Pitch is selected and written by Julie Landry.
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