For Western start-ups looking to enter Asian and Asian emerging companies worldwide, there is more funding available to investors who are increasingly looking to export domestic technology solutions to overseas markets.
Global Venture Capital Company White Star Capital Has set up a new office in Hong Kong this month to capture entrepreneurs in the emerging region, as well as help its portfolio companies go to Asia. Founded by Eric Martino-Fortin, who spent years in mergers and acquisitions in Merrill Lynch, Jean-François Marco, Sold Staria's Games Star Company from Ludia to FermantleMedia, over the past decade, has supported a group of early companies on several continents.
White Star is currently investing with eight partners in seven cities, from New York Healthy meal start freshly, Drop App Rewards Outside of Toronto, Photo platform upon request Miro of Paris and Dog food start nut box in London.
Starting in 2017, Martineau-Fortin and its partners began to move eastward. They initially decided to exclude China, where the market was already crowded with no shortage of funding available, resulting in much larger investment volumes compared to the US and Europe as well as high valuations.
The investor also believes that "cultural differences in the behavior of both consumers and institutions" require different regional strategies. While some Asian companies specializing in artificial intelligence, technology, enterprise software, and micro-mobility share some commonalities with their Western counterparts, other companies, such as e-commerce companies, remain distinct in Asia.
"Having said that, there are also a number of interesting ecosystems and countries outside of Hong Kong and China that are sometimes forgotten by North American investors and European investors such as Japan, Korea, Singapore and Taipei," Martino Fortin said by telephone. "These are also very advanced areas with schools Wonderful engineers and great engineers certainly have easy access to capital but do not always have the ability to deliver and sell their products, services and technologies to places other than the West Coast of the United States. "Interview with TechCrunch.
Based on this realization, White Star began building relationships with major corporations and investors in Japan and South Korea, resulting in 2018 to The opening of its first Asian site in Tokyo Chaired by former Executive Director of the World Economic Forum Shun Nagao.
Japan's proven record has inspired the investment company to launch in Hong Kong, As well as a list of offices in New York, London, Paris, Berlin and Stockholm. Joe Wei, A former investment banker at Deutsche Bank for more than 10 years before becoming a fine entrepreneur, tops White Star in Hong Kong.
The company's strategy is to allocate 10-15% of each fund outside of North America and Europe, with the bulk being allocated to emerging companies in Asia. It is currently 75-80% through The second fund was closed for $ 180 million in 2018, And looks forward to raising a larger fund by 2020.
Why Hong Kong
The founding partner believes that Hong Kong is making a big offer on the Chinese mainland with easy access to fast growing places such as Shenzhen – which includes some of the world's largest technology companies such as Tencent, Huawei and DJI – with "providing a similar working environment" to those she experienced in New York and London.
"Not only do you have a large capital in Hong Kong, but you also have a range of new innovative ideas coming out of Shenzhen and other fast-growing cities in China and Southeast Asia." Martino Fortin noted that we believe that a number of these ideas may be of interest For North America and Europe.
Regardless of where they are, White Star always chooses these criteria according to a set of criteria: "Can we help our companies expand beyond their own base? [help to] Recruitment of talent from abroad? Can we communicate with some of the companies that may be related to either technology, distribution or manufacturing? "
Trade tension between the United States and China Should not be overlooked For anyone who invests in the Greater China area. Martineau-Fortin pointed out that the trade war is negative for all, but the impact on the White Star is likely to be limited because its investment program offers "a unique neutralization of these challenges."
"Commercial disputes may have an impact on the relationship between some of our US companies and other jurisdictions, but I certainly hope that this opportunity is for other companies in our portfolio in Europe and Canada to strengthen the strong bond between Asia and China, where we have a strong presence."