Saturday, May 20, 2006

Dream came true for Great Dreams

Written by: S.M.Mehdi Hassan
Great dreams, a Chinese animation company has started a joint venture project with Sequoia Capital, a US based venture capital firm. Sequoia invested 7.5 million dollar in Hunan Great dreams Cartoon Media. Under this joint venture they will set up a new company on cartoon production. I am quoting from the article:
'Great dreams Cartoon and Sequoia Capital will set up a new company engaging in cartoon derivative products,' said Wang Hong, Greatdreams' chairman. Wang said the company plans to open 3,000 franchised stores this year, and plans to seek a Nasdaq listing by 2008.
Shen Nanpeng, Sequoia’s Chinese partner is expecting further investment in the project after the completion of 7.5 million dollar investment. Animation making is a service oriented industry and unlike manufacturing industry it requires skilled manpower. Animation and cartoon making now days, require computers and softwares and China has lots of skilled IT professionals.
China’s internet sector is also increasing at a very fast pace. According to Shanghai Daily report, Sequoia Capital also invested $4 million in, a Shanghai based website. The website is a Chinese version of the popular My space internet community. At present, the website has 10 million users most of which are young people between 20 and 22. I am quoting from the report,
The local Website, which has 10 million members, most of whom are age 20 to 22, has created an online platform that allows users to upload pictures and diaries. The Website company plans to list on Nasdaq within three to five years, according to Pang Shengdong,'s chairman and chief executive.
Sequoia Capital, which launched a US$200 million investment fund in China last year and in the past has channeled funds into Google and Cisco, will invest a total 150 million yuan (US$18.75 million) in, industry sources said on condition of anonymity. But partners to the deal declined to comment on the issue or divulge's share structure after yesterday's investment announcement.

Related articles:
Shanghai Daily