The new fund will manage about $40-$50 million. PNV, which is managed by Shuki Gleitman, Ami Dotan and Yigal Livne, is using a different business model from that being used by Infinity, and will be financed by investors outside China. PNV's current investors are from Hong Kong and Singapore. Dotan, a managing partner at PNV, says the fund expects to complete its first round of capital raising of some $20 million, by January 2005.
The model involves investing in new companies for the Chinese market that are established from existing start-ups belonging to the fund's investment portfolio as well as in future ventures in which Datang will serve as a strategic partner.
The Chinese public company Datang will be the strategic (non-investing) partner in the new Israeli-Chinese venture capital fund ICVC, being set up by Platinum Neuron Ventures (PNV), just three months after Infinity Venture Capital announced the establishment of the first Israeli-Chinese VC fund.