Chinese gaming company receives $20m

Venture capital firms IDGVC Partners and Infiniti Capital are backing the growth of Beijing-based One Net Entertainment. The $20m investment will be used by the company to pursue gaming development and to launch more mobile and online games.

China-focused venture capital firm IDGVC Partners and Hong Kong-based venture firm Infiniti Capital are investing $20 million in One Net Entertainment, a developer and operator of wireless gaming applications.
The investment will be made through its parent company, Leo Technology, which is a subsidiary of China Techfaith Wireless Communication Technology.

IDGVC’s $10 million investment will take the form of notes convertible into ordinary shares of Leo Technology or China Techfaith, while Inifinti’s $10 million investment is in the form of common equity.

Beijing-based One Net is a gaming company that targets mobile and online gaming markets. It develops and co-develops content and also uses licenced content on its gaming websites.

The investment will be used by the company to pursue gaming development and publishing opportunities and to grow One Net’s business, Defu Dong, chairman and chief executive officer of Techfaith, said in a statement.

Established in 1992, IDGVC Partners manages assets of about $2 billion. The firm is investing from the $600 million IDG-Accel China Capital Fund, which closed in May 2008.

The firm invests in early to growth stage companies in sectors such as internet, telecommunications, wireless communications, digital media and life science. It has officers in Beijing, Shanghai, Guangzhou, Boston, and Silicon Valley.

Infiniti Capital mainly invests in China-related companies in different markets.