Nokia Growth Partners is a global equity fund set up by the Finnish telecom giant. It is the premier venture investor focused on growth stage companies in the mobile industry. Recently, it decided to invest more in enterprises in India and China.
Nokia set up this fund in 1998, aiming to act as catalysts for innovation in the mobile telecom industry. The investment is covering all the value chain in mobile telemcom industry.
Nokia's venture funding activities to date exceed $900 million.
"Building on a track record of successful investments, Nokia Growth Partners, launched in 2004, will now establish direct operations in India and China and augment investment activity in the US and Europe, " the company said, “With the additional investment, Nokia Growth Partners will continue pursuing investments that are of strategic relevance to Nokia, and or complementary to their strategy."
Target investments cover all the value chain in mobile telemcom industry. It ranges from companies creating innovative mobile applications to services in areas such as payments, advertising, music and other related services/software. Currently the portfolio includes 9 companies, e.g., Bitboys, Coding Technologies, Global Locate…
The devlepment of this fund is in is aligned with Nokia’s great ambition to become a giant in mobile telecom industry, not only in mobile phone manufacturing area. Nokia Growth Partners put their strategies on consumer Internet services, reflecting the increased role that it will play in Nokia’s future success.
The role of China and India, as an emerging market, is highlighted in this case. The investment from abroad has not longer stop in exploring the cheaper labour resources. The large technology innovative capabilities are the new focused area.
Companies who have already noticed the trend and change their strategies with it can have their first-move advantages in business competition.
With the economy prospering, the labour cost is increased without suspense. China wants to keep the economy increasing trend, so a new development way must be found. For most foreign companies, the challenge is the same, either to stay with the soaring labour cost and bearing the profit erosion or to discover a new profitable business model.
Emerging market-China or India is more like a treasure mine. They are just standing there. We must be miners with sharp eyes to dig the buried diamonds.