SOURCE: Innovation Works

Innovation Works

August 31, 2011 21:03 ET

Innovation Works Closes First Internet-Focused Fund of $180 M U.S.

Chinese Early Stage Incubator and Investment Firm Sees Solid Progress

BEIJING and SAN FRANCISCO, CA--(Marketwire - Aug 31, 2011) - Innovation Works, an early-stage high-tech investment firm in China that invests in and coaches young entrepreneurs as well as provides complete services to help these start-ups, has successfully raised $180 million U.S. The Innovation Works Development Fund (IWDF) is the first U.S. dollar-based fund raised by the firm to be specifically focused on the Chinese Internet. This new fund was over-subscribed, validating Innovation Works' early successes and reflecting continued global confidence in the future of Chinese Internet companies.

"Innovation Works has incubated and invested in about 34 project companies, and nine of them have successfully obtained sizable Series A financing from third-party VCs. Our unique 'incubation + investment' model has not only produced a pipeline of high-quality projects, but also enabled local early-stage start-up teams to grow quickly with the help of our 360-degree mentoring services, in effect creating the 'entrepreneurial academy' for Chinese start-ups," said Kai-Fu Lee, the CEO and Chairman of Innovation Works.

Globally renowned corporations, family funds, and top institutions have participated in the fund. Investors include WI Harper, Silicon Valley Bank, Baillie Gifford, Sequoia Capital, IDG-Accel, Foundation Capital, Mohr Davidow, Chunghwa Telecom, Singapore Telecom, Mediatek, Foxconn, New Oriental, SAP, Bertelsmann, Motorola, Autodesk, pension funds from the U.S. and Canada, investment luminaries including Ron Conway and Yuri Milner, as well as executives and former executives from top Internet companies like Yahoo, Google, YouTube, Facebook, and Amazon.

Yuri Milner, who has invested in Facebook, Zynga, and Groupon, said, "Kai-Fu's Innovation Works is the top very-early-stage fund in China. We are proud to be an investor, and hope that IW will help to produce in China companies on the scale of Facebook, Zynga, or Groupon."

Ron Conway, a Silicon Valley icon, said, "Over the years, I have helped numerous companies in the United States from their founding. When I saw that Kai-Fu's Innovation Works has built up a great team planning to do the same in China, I became very excited. I personally invested in Innovation Works, and recommended many of Silicon Valley's top investors to invest. Innovation Works has already shown excellent early results, and we look forward to their continued success."

About Innovation Works
Founded in September 2009, Innovation Works has combined incubation and investing for early-stage companies. Its investment philosophy is to "invest early, but double-down on winners." IWDF enjoys a unique advantage due to the special bond between Innovation Works and the companies which it has incubated. The fund has been co-founded and co-managed by Innovation Works and WI Harper Group.

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