FTA, January 2001

Silicon Valley-based Walden International Investment Group (WIIG) has been investing in Asia's technology sectore since the mid-1980s, and it was among the very first to introduce US-style VC investing in the region.

In 2000, the company profitably exited from 26 investment technology investments in the first 11 months of the year, typically through public share offerings. Its timing and market sense were impeccable, and it fully exploited the region's abbreviated technology boom.

"It was our best yera yet," simply says KO Chia, the executive vice president at Walden International Investment Group.

WIIG also held interests in some of the year's more high-profile Asian technology Nasdaq listings, such as Sina.com ($68 million) and iAsiaWorks ($117 million).

Other notable trade deals include the sale of network processor maker T.sqware to Globespan for $200 million and two sales to Nortel Networks: the $778 million sale of Promatory Communications and the $540 million sale of Sonoma Systems.

He explains that the firm saw the potential of Asian technology companies as far as back 1987, when the firm began operations here. Walden International has helped create nearly 300 companies across the tech spectrum.

Chia says the group has not slowed its investment drive despite the tough finish in 2000 for global technology markets.

"On a group-wide basis, we invested over $200 million in technology companies - and half of that went to Asia," he says.

In 2000, for instance, WIIG joined othe rinvestors in the $115.5 million financing of Singapore-based voice-over-IP supplier InnoMedia. Vertex Management led the financing round.

"In a start-up stage, we usually invest $1 million. When the financing reaches the late stage - that is, before the IPO - our investment is worth about $15 to $20 million."

"Returns have been extremely good and our investors are very pleased with their investments with WIIG."

The firm has started a new fund raising drive to replenish its pool of investible funds. It has kicked off its latest flagship fund, Pacven Walden Ventures V, which will have an initial target of $750 million to fund all WIIG investments.

The first closing for the fund was held in early December and a final closing will be done in late February 2001.