Oak Investment Partners Joins IDG Ventures in $30 million Investment in Chinese Online Firm
SHANGHAI, CHINA and BOSTON, MASSACHUSETTS – SEPTEMBER 13, 2005 – Allyes Information Technology, a leading Chinese provider of online marketing services and technologies, announced today it has completed $30 million Series B financing led by IDG Ventures China (IDGVC) and Oak Investment Partners. This latest round, one of the largest venture investments in the Chinese Internet sector this year, allows Allyes to continue its aggressive expansion in the rapidly growing Chinese Internet advertising market.
IDGVC, an existing investor in Allyes, was one of the first American venture capital firms to open offices in China more than 13 years ago. International Data Group (IDG), with headquarters in Boston, is the founding limited partner of IDGVC. Oak, a new investor in Allyes, has been an active investor in the marketing services sector in the United States for the last 10 years.
“With this new capital infusion from two leading international investors, we will solidify our position as the leading online marketing services and technology company in China,” said David Zhu, CEO, Allyes. “Since 2002, Allyes’s Media Services group has consistently been ranked the #1 interactive agency in China. In addition, we own a substantial share of the Chinese ad serving market.”
Allyes features three online businesses: a full-service interactive agency, an online technology solutions suite, AdForward, and a performance marketing services platform, SmartTrade. The three businesses offer a complete set of services for advertisers, agencies, Web portals, and publishers to maximize the benefits of their Internet-based marketing programs.
“We have great confidence in Allyes’ ability to execute and grow in this explosive market,” said Pat McGovern, founder and chairman, IDG. “As an investor in China for well over a decade, we have witnessed the tremendous growth in Internet usage. Today, China has approximately 100 million Internet users and usage is growing at 10-15% per year,” added McGovern. “Allyes will certainly benefit from this impressive trend.”
Fred Harman, general partner at Oak Investment Partners of Palo Alto, California said: "We are very pleased to team with IDGVC and partner with Allyes, a pioneer in the Chinese Internet advertising market. We focus on exceptional entrepreneurs and companies with large, growing market opportunities and compelling business models,” Harman explained. “Allyes is well positioned as both the largest interactive advertising services company, as well as the dominant market share leader of all Internet advertisement placements in China.”
Allyes is the leading Chinese online marketing services and technology company. Allyes helps advertisers and marketers acquire, retain, and grow customers across all digital media. The Company is comprised of three operating units: a full-service interactive agency, a provider of digital marketing technologies and expertise, and a performance media affiliates group. Founded in 1998, Allyes is headquartered in Shanghai, China, with offices in Beijing, Shenzhen, Tianjin, Wuhan, and Chongqing. For more information, please visit www.allyes.com.
About IDG Ventures China (IDGVC)
Founded in 1992 by International Data Group (IDG) — the leading global technology media, research, and event company — IDGVC's operations are headquartered in Beijing, with branch offices in Shanghai, Guangzhou, and Shenzhen in China. As one of first American venture funds in China, IDGVC’s investment activities focus on such industries as the Internet, information services, software, telecommunications, networking technology, biotechnology, and life sciences. IDGVC has invested more than $200 million in over 100 portfolio companies including Baidu.com, ctrip.com, sohu.com, blogcn.com, and dangdang.com. IDG Ventures is a $1 billion network of funds spanning Asia, Europe, and North America. For more information on IDGVC, please visit www.idgvc.com.
About Oak Investment Partners
Oak Investment Partners is a multi-stage venture capital firm with a total of $5.8 billion in committed capital. Investments are primarily focused on growth opportunities in internet/enterprise software and services, telecommunications equipment and services, data storage, financial services technology, outsourced services, healthcare services, and retail. Over a 30-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 400 companies at key points in their lifecycle. Oak has been involved in the formation of companies, funded spinouts of operating divisions and technology assets, and provided growth equity to mid- and late-stage private businesses, and to public companies through PIPE investments. A representative list of Oak portfolio companies includes Aquantive, Compaq, Fastclick, Inktomi, InterNAP, Netblue, Parametric, Pivotal, Polycom, Primus, Seagate, SMIC, Sybase, Synopsys, Tele Atlas, Tensilica, and Wireless Facilities. For more information, please visit www.oakvc.com.
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