Inland hi-tech is welcoming a new round of investment. According to Patrick McGovern, Chairman and Founder of International Data Group (IDG), IDG has set up the New Media Fund and China Growth Fund with a total volume of US $500 million and will invest in the Internet, information service, IT, and software in China’s mainland in the next five to seven year. So far, there are 10 companies invested by IDG that have been listed in the US and Hong Kong. Next year, there will be another three companies going public.

Three Companies Will Go Public Next Year
So far, IDG has invested in over 140 companies in China, with a total volume of over US $200 million and an average return rate of 48%. Of which, six companies have been listed in Hong Kong and four in NASDAQ of the US, such as Sohu.com, CTrip, China Financial Online and Baidu.com. He said IDG had invested over 10 companies in China’s mainland with the new fund. The three companies that are planning to go public in the US next year are all IT companies.

Average Share Holding Takes up 15%
According to Patrick McGovern, if the invested companies grow up to certain scale, IDG will sold it out and reinvest in other companies with the profits. The average share holding proportion take up 15 to 20 percent.

He said the return rate of venture capital is 10-20 percent in Europe, 25-35 percent in the US, and 35-45 percent in China. By the year 2020, IDG is planning to increase its venture capital fund from US $1 billion to US $10 billion with its focus in China. The percentage of investment of its venture capital is allocated respectively: 45% in IT, 30% in telecommunications and Internet, 15% in software, and 10 in network technology and bio-technology.

IDG’s businesses include publishing, research, venture capital and exhibition. Regarding the future development, IDG is planning to achieve its revenue to US $40 billion by the year 2020, of which US $7 billion will come from China.

In addition, IDG has set up venture capital fund in India, Russia and Poland.

Co-organizing the Hi-tech Fair for 7 Years
As the co-organizer of Shenzhen Hi-tech Fair, one of the major purposes of Patrick McGovern’s trip to Shenzhen is to attend the opening ceremony of the Fair and the SMB Forum.

He said IDG had run the IT Hall, the largest hall of the Hi-tech Fair which covers an area of 30,000 square meters, for seven successive years. There are 460 exhibitors this year, an increase of 24 percent of that of last year. At the same time, he gave a high appraisal of Asian Museum and expressed his interest in cooperation.

Interested in Cooperation with Asian Museum
Regarding the competition of exhibitions with neighboring areas, Patrick McGovern expressed that Hong Kong is the center of international finance as well as the hub of transportation. The differences of HK’s exhibition from that of the inland area are its diversification and internationalization of products. He also pointed out that the Asian Museum which is located near the Hong Kong International Airport enjoys a convenient transportation and IDG will seek for opportunities of cooperation.

In addition, IDG set up IDG World Expo China in Beijing, a wholly-owned exposition company after China permitted foreign companies to enter in exhibition business. Exposition is one of the major businesses of IDG and IDG holds over 170 exhibitions and conferences in over 40 countries.