GGVC Expands Fund, Team

Granite Global Ventures has expanded the size of its third fund from $400 million to $600 million. The expansion-stage firm invests in both the U.S. and China, but says that the extra capital will largely be used to focus on investments in Chinese companies that are driven by consumer growth.

 

The firm also announced that it has hired four partners from Shanghai-based SIG Capital: Zhuo Fumin and Jessie Jin as managing partners, and Michael Kuan and Steve Chu as venture partners. The four will continue to manage their existing fund Venture Star Shanghai, while SIG Capital will officially become a Granite Global affiliate.

 

PRESS RELEASES

 

Granite Global Ventures (GGV), a leader in expansion-stage venture capital investments in the U.S. and China, announced today that its Granite Global Ventures III fund has grown to $600 million. The GGV III increase from the original $400 million raised in October 2006 brings Granite Global Ventures' total capital under management to more than $1 billion.

 

Granite Global Ventures will continue to focus on lead investor positions with expansion-stage companies in the U.S. and China. GGV will use the additional capital to extend its investments in technology-based companies, services, and emerging sectors, with an increased focus on investments in China driven by consumer growth.

The investment strategy for Granite Global Ventures builds on the firm's success in achieving significant growth and successful exits for its large, diversified portfolio of expansion-stage companies in the U.S. and Asia. The total market value of exits in the eight years since GGV's formation now exceeds $8 billion.

In conjunction with today's funding announcement, GGV also has announced that four partners from SIG Capital in Shanghai have joined the firm. (For more information, see press release, “Granite Global Ventures Expands Team in China,” dated March 26, 2008.)

“China's rapidly growing consumer economy presents a tremendous opportunity for us to build on the success of our expansion-stage investment strategy,” said Hany Nada, managing partner and co-founder of Granite Global Ventures. “Through the increase in our fund size, we are strongly positioned to increase our investments in these new consumer-driven markets, as well as in our traditional industry sectors, to continue building a diversified portfolio of innovative companies that create long-term value for our investors.”

GGV's expansion reflects the increased commitments of a premier group of university endowments, pension funds, foundations, and major financial institutions from firms based in the U.S. and around the globe.

About Granite Global Ventures

Granite Global Ventures is a leader in expansion-stage venture capital investments in the United States and Asia. Focused on expanding global innovation, GGV's highly diverse team manages over $1 billion from its offices in Silicon Valley, Shanghai, and Singapore. The firm invests across a range of sectors in information technology, services and healthcare, as well as the consumer growth sector in China. GGV has provided capital and helped accelerate international expansion for its worldwide portfolio of high-growth companies, particularly in the U.S. and China. GGV's portfolio includes Alibaba.com (HKSE:1688), athenahealth (NASDAQ: ATHN), Boston-Power, BCD Semiconductor, Endeca, hiSoft, QuinStreet, and SuccessFactors (NASDAQ: SFSF). Recent exits include AAC Acoustics (HKSE: 2018), Netli (acquired by Akamai), Sirna Therapeutics (acquired by Merck), Qpass (acquired by Amdocs), XenoPort (NASDAQ: XNPT), and Xfire (acquired by Viacom). The total market value of GGV's exits since the firm's formation in 2000 exceeds $8 billion. For more information, please visit http://www.ggvc.com .

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Granite Global Ventures (GGV), a leader in expansion-stage venture capital investments in China and the U.S., announced today that four partners from SIG Capital in Shanghai are joining the firm, extending GGV's presence in China. The new team members bring broad-based experience in investing and growing China companies, as well as an in-depth understanding of local market dynamics in China.

Zhuo Fumin and Jessie Jin are joining GGV as managing partners, while Michael Kuan and Steve Chu are taking on roles as venture partners. The new GGV team members are partners in SIG Capital, which continues to manage Venture Star Shanghai, one of the first Sino-foreign joint ventures licensed to invest RMB-denominated venture capital in China, and now an affiliate of GGV.

“We have had the pleasure of working with Zhuo, Jessie, Michael and Steve since we first established our China presence in 2000,” said Jenny Lee, managing partner of Granite Global Ventures. “Their deep experience and familiarity with China's consumer culture, local business community, and regulatory environment has resulted in a string of successes in investing in and expanding China businesses. We are excited to have them join GGV and build on these long-standing relationships. We look forward to a new level of collaboration with them in capitalizing on the many investment opportunities emerging from China's rapidly growing consumer economy.”

In conjunction with today's partner news, GGV also announced the expansion of its GGV III fund, bringing the firm's total capital under management to over $1 billion. (For more information, see press release, “Granite Global Ventures III Grows to $600 Million,” dated March 26, 2008.)

New GGV Partners Bring Deep China Investment Expertise

Zhuo Fumin is a leading authority in China on corporate governance, capital markets, economic development and investment. He currently serves on the boards of directors of Focus Media (NASDAQ: FMCN), Shenyin Wanguo (HKSE: 218), and China Enterprises Limited (SSE: 6000). He previously held positions as chairman and CEO of Vertex China Investment, CEO, executive director and vice-chairman of Shanghai Industrial Holdings Limited (HKSE: 363), and senior director of the Shanghai Office of Economic Reform. He graduated from Jiao Tong University and received a master's degree in economics from Fudan University.

Jessie Jin is an expert in bringing foreign direct investment in China. She currently serves as a director on the boards of Yadu Environment Co., a co-investment of GGV and SIG Capital, and Life Biomed Co. She was previously vice president of Vertex China Investment, and worked with Shanghai Industrial Holdings Limited (HKSE: 363), initially helping to arrange its listing in Hong Kong and then serving as head of its Strategic Investment Department. She also was a member of the International Division of Shanghai International Securities. She holds bachelor and master of management degrees from Fudan University.

Michael Kuan started his investment career in the U.S. in mid-1980s with Capital Corporation of America where he served as an analyst, vice president and assistant to the chairman. Since the early 1990s, he has been investing in and providing strategic management services to Chinese companies in Hong Kong and China, including Chinadotcom, China Eagle Securities, China Cable Networks, CyberCity International, and Summit Lifesciences. He has served on a number of public and private company boards and has been an advisor to PetroChina, DBS Bank, and Fraser & Neave.

Steve Chu previously managed the Asian merger and acquisition business at UBS and the Asian corporate finance business at Banque Paribas. He was CFO of NetStar Group, and managed the corporate finance department and then the direct investment activities of CEF Capital. He has practiced law with Brown and Wood in New York and with Baker and McKenzie in Hong Kong. He is a graduate of Yale College and Boston University School of Law.

About Granite Global Ventures

Granite Global Ventures is a leader in expansion-stage venture capital investments in the United States and Asia. Focused on expanding global innovation, GGV's highly diverse team manages over $1 billion from its offices in Silicon Valley, Shanghai, and Singapore. The firm invests across a range of sectors in information technology, services and healthcare, as well as the consumer growth sector in China. GGV has provided capital and helped accelerate international expansion for its worldwide portfolio of high-growth companies, particularly in the U.S. and China. GGV's portfolio includes Alibaba.com (HKSE:1688), athenahealth (NASDAQ: ATHN), Boston-Power, BCD Semiconductor, Endeca, hiSoft, QuinStreet, and SuccessFactors (NASDAQ: SFSF). Recent exits include AAC Acoustics (HKSE: 2018), Netli (acquired by Akamai), Sirna Therapeutics (acquired by Merck), Qpass (acquired by Amdocs), XenoPort (Nasdaq: XNPT), and Xfire (acquired by Viacom). The total market value of GGV's exits since the firm's formation in 2000 exceeds $8 billion. For more information, please visit http://www.ggvc.com .