Japan-US cross border venture capital firm Entrepia is currently marketing a US$100m second fund, which it would like to raise in the USA, Europe and Asia. Entrepia is using Legend Securities as placement agent in North America, and is considering appointing a separate agent in Europe. The plan is for a first closing in the first quarter of 2002, and final closing in mid-2002.
Japanese trading house Nissho Iwai, which invested in Entrepiafs US$30m first fund, has committed US$20m as anchor tenant in the second fund. Both financial and strategic investors are sought as Limited Partners. Entrepia is positioning itself as the ggo to Japanh fund. gWe find we are a natural ally for other VCs. Many have and will continue to have companies in their portfolios that would benefit from entering the Japanese market,h said Amit Srivastava, president of Entrepia Ventures, who recently joined from JP Morgan Partners.
Entrepia differentiates its approach from other private equity and corporate institutions that offer introduction and business development services into the Japanese market. gWe invest in companies that have potential to succeed in the Japanese market, and then actively work with them to generate incremental top line growth they wouldnft otherwise have achieved,h said Srivastava. This translates into additional value creation and superior returns for Entrepiafs investors.
The key, he feels, is that a majority of Entrepiafs staff are Japanese nationals, many with engineering backgrounds, whose long-standing relationships span the mid-tier engineer level (gwhere the work really gets doneh) and drive key decisions enabling portfolio companies to sell their products and services in Japan.
Examples of successful Entrepia portfolio companies are Sonus Networks, Xacct Technology and Cellport. The track record of the first fund should encourage investors to look at the current fund. Of US$30m raised, US$20m was invested, starting in 1998, in 17 companies. Three exits have been realised either through IPO or sale, returning US$43m to date, and an IRR of 181%.
Entrepia has a dedicated business development team in Tokyo (gwe are close to the trenchesh), and offices in New York and San Jose. Investors can contact the firm at (646)-487- 6986 in the US or by e-mail at firstname.lastname@example.org (www.entrepia.com).