Taiwan, Hong Kong and Singapore make up 3 spots of the “Tiger Economy” with Korea being the 4th one in the “Tiger Economy” Each market has its own venture capital industries established, and operating rather differently.
Hong Kong ‘” Highlights:
· Hong Kong is the capital gateway into China, and has a well established venture capital industry.
· Hong Kong is also the established financial market, including a market for technology stocks.
· It competes with Singapore as the preferred destination for technology stock listings.
· Hong Kong based venture capital funds invest in international projects, especially those in China, Taiwan and SE Asia
· Hong Kong based firms are also very active in international real estate developments and investments, as well as infrastructure projects
· Taiwan is a major technology market, with global leading position in telecommunications and semiconductor technologies
· Taiwanese Venture Capital Firms are primarily companies established by the country’s major semiconductor firms and technology companies such as Acer, Asus or Taiwan Semiconductors
· The Taiwanese Venture Capital firms are also very active in investing in biotechnology especially medical devices sectors
· Taiwanese VCs are most active investing in opportunities in China
· Singaporean investment firms are amongst some of the most active firms in the world, and certainly one of the most outward looking one.
· A good example was the strategic acquisition in Equinix back in 2002/2003 and moved into the Internet Data Center industry
· Other good examples are Temasek’s, a sponsored investment arm of Singaporean Government into a wide range of property projects in Australia, SE Asia and Japan
· Singapore is also a leading investment nation in terms of cleantech, environmental applications, particularly in water management related technologies.
· Singaporean investment firms have demonstrated interests investing in India, SE Asia, Rest of Asia, Australia and Middle East
· Majority of the Singaporean venture capital firms are owned or affiliated with its largest corporations as well as the Singaporean Government
· Singaporean utilities companies have also participated in utilities projects worldwide, including Eastern Europe, South America and Middle East, and have listed several entities in Australia as well
Korea is one of the economic wonders in the world, its success was built upon Korean Government’s 20 year vision determined during the 1988 Olympics which transformed Korea into a major economy.
· Majority of the Korean Venture Capital Funds were formed by its conglomerates, including LG and Samsung, as well as Hyundai
· Korean Banks have also formed subsidiaries investing in venture capital projects, but it is still at a relatively early stage.
· In terms of the investments, its investments are mainly in the ICT sectors, with very strong focus in telecommunications, semiconductors and engineering sectors
· However, according to our research, cleantech investments are also rising, and there has been specific investment funds set up investing in cleatech opportunities. Korean’s mining and steel companies have also been very active in investing in mining exploration companies, particularly in Australia and Canada