Silicon Valley-based cross-Pacific venture capital and consulting firm DragonVenture, Inc. has recently incubated and invested in eFriendsNet Entertainment Corp (eFN), a company offering social networking service through Internet and mobile phones in China.
In September, with DragonVenture as the incubator and investor, eFN successfully closed its series A equity financing from reputable individual investors in the U.S., China, Japan and Hong Kong. Then in December, the company has set up and launched its operation in Beijing. The business will be exclusively in China with its headquarters in Beijing, starting from major metropolitan regions and gradually expanding to wider regions in between. The business model is built on the increasing demand of seeking affiliation and relationship among peoples.
The plan also calls for the booming application of Location Base Services (LBS). The recent release of wireless technology and facility in China will bring the social networking to the mobile arena. China currently has the largest mobile phone user base in the world. With the attempt to ride the rising Internet 2.0 wave, which is probably more significantly so in China, the revenue model is projected as rock solid considering China has the second largest online population in the world next to the U.S. It is observed that the time delay in technology related market between the U.S. and China is rapidly shrinking.