The Hina Group, a China-based fund management company, is eyeing investment opportunities in the fast-growing technology and internet sectors in the mainland, aiming to seed its venture capital in start-ups with viable business models, the Hong Kong Economic Journal reported Monday.
Chairman and chief executive Chen Hong was quoted as saying in an interview that the positioning and the caliber of the management teams of the newly-established firms will also be crucial in helping Hina decide whether to place its bets on a particular entity.
Video-based social network YY.com and geographic location-based social platform immomo.com are examples of internet newcomers seizing a business model that can actually serve multiple segments and provide a wide range of products, Chen said, noting immomo.com recent move to operate an interactive gaming platform that has raised the company’s valuation.
However, Chen dismissed the possibility of investing in any music networks or music applications companies. Complicated intellectual property issues, and the reluctance of users to pay for the music they listen to, make such businesses unprofitable, he said.
Videos websites, however, can generate income by inserting commercial advertisements into the video clips, Chen noted.
Hina’s venture capital fund will retain its focus on investing in start-ups, rather than the companies that have progressed to a later stage, he said, noting that the latter segment offers lower returns.
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