Fund Briefs, September 2010

DCM Hires Slingbox Co-founder, Closes Sixth Fund

Venture firm DCM announced it raised a new fund added a tech vetean to its roster in July.

The firm raised $400 million for its sixth venture capital fund, and an RMB 200 million ($30 million) side-fund. The firm previously raised $505 million for its fifth fund, which closed in 2005.

As part of the fund close, DCM added Jason Krikorian as a general partner and promoted Tokyo-based Osuke Honda to partner.

Most people know Krikorian through Sling Media, the video technology company he co-founded with his younger brother Blake Krikorian. The company, which raised about $57 million from DCM, Mobius Venture Capital and other investment firms, was purchased by EchoStar for $380 million in 2007. Krikorian stayed involved until January 2009 when he left to spend time with his family, following the birth of his third child.

He joins DCM as the firm looks to continue to invest in cleantech, digital media and the Internet (such as content, ecommerce, mobile and cloud computing companies) across the United States, China and Japan.

Krikorian says that he will take a look at a lot of digital media deals, especially in the consumer space, and he will focus primarily on U.S.-based deals.

“But, like other general partners at DCM, I will help our portfolio companies reach the overseas markets, such as in China,” he says.

Krikorian adds that it was an important consideration for him that DCM has international reach. “I’m a big fan of the global strategy that DCM preaches,” he says. “At Sling Media, for example, months after we launched, we wanted to go to Japan, but we were only able to do that because of DCM’s outreach and contacts there. As an entrepreneur, I saw firsthand DCM’s global strategy at work.”

In the last few years, DCM has had exits on both sides of the Pacific Ocean with such companies as Sling Media, 51job, Kabu.com, Paycycle and PGP. —Alastair GoldfisherIDG to Launch Two More Funds in Vietnam

IDG plans to launch two more IT-focused venture funds in Vietnam, according to the Vietnam Economic Times, which cited IDG Chairman Patrick McGovern.

The first fund, a $150 million vehicle, is slated to begin investing next year and will look for seed and early stage startups. IDG intends to set aside another $250 million to be deployed beginning in 2012 and will back comparatively mature companies in IT as well as in health care and retail.

IDG has been investing in Vietnam since 2004, when it established IDG Ventures Vietnam, which claims to be the first venture fund in the country. The $100 million fund has invested in digital media platform company DMS Group, education website Hocmai.vn, and mobile payment platform Vinapay. —Constance LoizosHighland Considers China Fund

Boston-based Highland Capital Partners, which already invests in China and has a dedicated team there, is considering raising an RMB-denominated fund.

The venture firm broached the subject in a recent limited partner advisory meeting, according to a source. The source says the firm discussed setting up a new dedicated team that would have its own name and with Highland possibly serving as a cornerstone limited partner. No word yet on a potential fund size.

Highland declined to comment. —Dan PrimackAvalon Over Half Way to $200M Ninth Fund

Avalon Ventures is raising upwards of $200 million for its ninth fund, according to a regulatory filing. The La Jolla, Calif.-based firm already has secured $118 million in capital commitments. It is currently investing out of a $150 million fund raised in 2007.

DT Closes China Fund

DT Capital Partners, a growth equity investor focused on China, has raised RMB 1.5 billion ($222 million) for a new fund, according to Zero2IPO.

Storm Plans Fourth Fund

Storm Ventures is pre-marketing its fourth fund with a $150 million target, according to VentureWire. The firm previously raised $220 million for its third fund in 2005.