Ignition starts up VC firm in China

Bellevue-based Ignition Partners said Wednesday it has opened a venture-investment firm in Shanghai to work with technology startups and expansion-stage companies in China.

The firm, Qiming Venture Partners, and other investors associated with Ignition are looking to invest $200 million in companies in three fields: mobile applications, consumer Internet services and semiconductors and systems.

"There's no shortage of interesting investments right now," said Richard Tong, a partner at Ignition. He said Qiming will be trying to find the next Microsoft or Intel.

The firm will invest in companies working in China's domestic market and export sector.

Tong estimated some $1 billion was invested last year in the venture-capital market in China, about the same amount invested in Washington state.

"The venture-capital environment in China is definitely less mature than the U.S., but remember, this is an economy that's growing three to four times as fast," Tong said. "The opportunity is immense."

Ignition partner John Zagula said his firm has been studying China for nearly three years, and over the past year invested in Yeelion, a Beijing company working on personalizing information.

Another Ignition portfolio company, Seattle-based Melodeo, said last month it's working on delivering music and other content over mobile networks in China and Japan.

Qiming (pronounced chee-ming) is a Chinese name that signifies starting, enlightenment and the dawn of a new day, Ignition said. It's a meaningful, easily understood name for the Chinese, Tong said.

Tong and Zagula will be temporarily relocating to Shanghai to get Qiming off the ground.

Joining them will be Duane Kuang, a former Intel Capital China director; Gary Rieschel, founder of Mobius Venture Capital; and Edward Zhou, a former Cisco Systems business-development executive.

"We wanted to have real skin in the game," Zagula said. "We wanted to be on the ground and we didn't feel like this is something we could lend our brand name to in China and let it go at that."

Qiming hasn't announced any investments in China yet.

Kim Peterson: 206-464-2360 or kpeterson@seattletimes.com