Infinity Venture Capital Fund has begun to raise money for the new $150 million Infinity III fund, after getting an early commitment for the first investment, which will be made mainly in Asia.
"We have received strong backing from the IDB group via Clal Industries as well as investors from the UK and the US," said Amir Gal-Or, Managing Partner of Infinity Venture Capital. "We can thus announce the $25m. initial closing for the Infinity III fund. The investment is expected to be completed by December 2006."
Infinity Venture Capital is planning to invest 40% of the Infinity III fund in Asia, with a special focus on China. About one-third of the fund will be raised from investors in Asia.
In addition, a new financial structure has been built with Goldman Sachs, which will service the interests and preferences of Asian investors and has a special scalable risk management component. China has been on Infinity's radar since 2004, when it launched the first foreigninvested limited partnership venture fund in China. Since then, four investments have been made and one successful exit, Shellcase. Two additional investments are currently underway.
"We see great opportunities to combine Israeli late-stage or pre-exit technology companies with Chinese expertise in business and manufacturing and grow them into global companies," Gal-Or said. "Today, Israel has no history or infrastructure in China and many companies seeking to enter this growing global market fail. Our track record, network and on-shore operations will help these companies to succeed."
Infinity Venture Capital manages more than $300m. through the Nitzanim Fund, Infinity I Fund, FBR Infinity II Ventures, the Infinity IMS and the Infinity-CSVC Fund in China. Since June 2005, Infinity has managed 11 successful exits at a total deal value of $2.17 billion - among them were ProActivity, Identify, Sightline, Shellcase, Saifun, Maayan Ventures and Native Networks.
Infinity's strategy is to look into Israeli technology companies opening operations in China, joint ventures between Israeli and Chinese partners and Chinese technology companies looking to grow and expand to global markets.
"Over the last years, Infinity has demonstrated great progress mirrored in the quality and the number of exits," said Avi Fischer, deputy chairman of IDB Holding Corporation. "This is why the IDB Group has chosen to continue its involvement and support of the Infinity fund."