IDGVC Partners and Infiniti Capital are splitting a USD20 million investment in a Chinese mobile gaming developer.
Based in Beijing, One Net Entertainment is targeting both the mobile and online PC gaming markets through its websites 798uu.com and 798game.com, respectively. Three massive multiplayer online role-playing games are planned to launch in 2009 for online PC users on 798game.com.
The venture capital firms are making the USD20 million investment in One Net Entertainment Limited through its parent company, Leo Technology Limited, a wholly-owned subsidiary of China Techfaith Wireless Communication Technology Limited. IDGVC's USD10 million investment will be in the form of a convertible note convertible into ordinary shares of Leo Technology or TechFaith at the option of the note holder, and Infiniti Capital's USD10 million investment will be in the form of common equity. The transaction is subject to certain closing conditions.
Defu Dong, chairman and CEO of TechFaith, stated, "We are pleased with the impressive progress of our gaming business and welcome the investment from IDG and Infiniti. One Net Entertainment has quickly established itself as a competitor to be watched in the wireless mobile phone gaming and PC online gaming markets. With this USD20 million investment, we expect to be able to execute on our growth strategy and pursue game development and publishing opportunities to even further accelerate One Net Entertainment's growth prospects."