Jafco Asia, which has offices in eight countries in the region and subsidiaries in the US and UK, claims to manage about US$650 million in six funds, investing an average of US$3-5 million in each company.
According to the 10-year-old company, US$60 million has been invested in Singapore, a third of which in technology-related companies, said its Singapore general manager Francis Leung. He added that S$10 million has been invested "in two or three start-ups" here this year.
Among Jafco Asia's investee companies in the region are Singapore's Eastgate Technology and Nobel Design Holdings, Malaysia's Biztone.com and T2mail, and Hong Kong's I-Quest Corporation.
Looking ahead, the venture capital firm will be focusing on technology-related companies ranging from software and application service providers to e-commerce and life sciences companies.
"Technology investments now account for 34 percent of our total investment portfolio," noted Chew. In terms of annual performance, this has translated into gains of 75 percent, 80 percent and 99 percent for the technology component of investments made in 1998, 1999 and the first half of year, respectively. "The trend is reflective of our change in focus," said Chew.
In return, Jafco Asia will look for a "significant minority stake" of between 10 to 30 percent.
"Besides considering the viability of a company's business model and market potential, we look for opportunities to add value to the investment (and not only in terms of) funding. For example, (we may tap) into our global business network (in) Japan...and the US. Where needed, we also provide financial and business advice," said director and executive vice president Bradley Chew.
He declined to comment on its target and actual returns, saying only that it worked towards "internal IRR (internal rate of return) targets".
Meanwhile, Jafco Asia will be setting up "The Presidents' Club", a focus group of 10-20 selected partner CEOs in the technology sector that will include a number of its investee companies.
The group will be expected to promote keiretsu--a Japanese term for developing mutual business interests among companies not in direct competition--among its partners as well as advice Jafco Asia of the trends and developments in the Asian technology sector.
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