Infotech nears midpoint for new fund

Infotech Pacific Ventures has raised $41 million of a $100 million fund.

Infotech has been working closely with the Chinese Ministry of Information Industry and invests in Chinese companies that make circuits, software and components. The firm, which was founded in 2000, has invested in more than 20 Chinese startups to date. However, the firm does not restrict its deal activity to just China. It also invests in the United States and has backed chipmaker Teknovus Inc., a Petaluma, Calif.-based company that has raised more $37 million from Infotech and other investors, according to Thomson Financial (publisher of VCJ). The firm has offices in both Palo Alto, Calif.,and the Haidian District of Beijing.

A regulatory filing for the fund lists Fang Roger Li, Tingru Liu and Terence Eng Chuan Tan promoters.

Limited partners in Infotech’s funds include China Putian, Hisense Co. Ltd., Montagu Newhall and Procific.

Infotech competes in an increasingly crowded IT investment market in China. Financing rounds doubled in the second quarter to 40, up from 19 in the same period last year, according to data compiled by Dow Jones’ VentureOne. VCs poured $314 million into the IT space in Q2, up 176% from the $113 million they invested in the same quarter a year ago. —Alexander Haislip