Recent news item below from Bessemer Ventures is a trend these days, where a lot of investments are going to China and India. These US based funds get access to true venture style investments while China and India get access to capital and expertise that helps them grow companies that will drive their economies. It is a win-win.
See one of my earlier posts on long term positive impact of Venture capital on the US economy:
Venture Capital benefits the economy
This VC investment flow to China and India will have positive outcomes for these countries - of course, investors in the US benefit as well since they get access to opportunities that do not exist in the US.
Deepu
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Bessemer To Devote $350M Of New $1B Main Fund To India
By Rebecca Buckman 7/19/2007
Bessemer Venture Partners is expanding its presence in India, earmarking $350 million of a new $1 billion fund to tap the country's fast-growing economy.
Bessemer has made 12 investments in Indian companies from its current investing fund, raised in 2004. They include a hotel chain, a financial-services firm and a company that makes components for air conditioners, says Rob Chandra, the Bessemer managing partner heading up the firm's Indian efforts. The new fund is expected to be announced today.
Bessemer's move to devote a portion of the firm's main fund for Indian investments - instead of raising a separate, dedicated fund - runs counter to the trend in Silicon Valley, where firms have set up distinct funds to invest in countries like India and China. Indeed, Bessemer had been thinking about raising a separate fund, VentureWire previously reported.
Mr. Chandra says investing globally out of a single fund would create a "good alignment of interests" between the fund's investors and Bessemer's partners, who would make money only if the fund as a whole turned a profit for its investors. Investors in venture firms with multiple funds often make money in some funds but lose money in others, he said.
Bessemer will likely collect a traditional management fee, generally at least 2% of assets, of the $1 billion fund.
http://www.bvp.com