IBM and financial house Lehman Brothers have created a $180 million China Investment Fund with the goal of providing business insight for the country's public and private companies. The investment plan, begun with $90 million in initial funding from each of the two companies, held out a goal of transforming the finances and business practices of China's enterprises. Unlike the usual venture capital blueprint, the China Investment Fund will focus on mid-stage or mature public and private companies.
The new fund is in addition to the already-existing IBM Venture Fund, IBM spokesperson Fred McNeese told internetnews.com. IBM and Lehman will "provide management and technology expertise" to the companies in which they invest, according to a statement. The fund also supports China's governmental policy of encouraging companies to update their business practices and management.
In 2005, China's Lenovo purchased IBM's PC business for $1.25 billion. Chipmaking giant Intel last year established a similar investment fund aimed at capturing a share of the burgeoning Chinese technology market. The $200 million Intel Capital China Technology Fund targeted Chinese companies which could help the chipmaker's goal of expanding that country's Internet infrastructure.
View: Full Article @ Internet News Bureau
2 Comments - Add comment