This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IDG's Pat McGovern on Investing in China

Pat McGovern is the founder and chairman of International Data Group (IDG), the world's leading technology media, events, and research company with 2009 revenues of $3.05 billion.

He is on the Advisory Board of IDG Capital Partners which manages $2.5 billion in capital to invest in China-focused technology companies. They are arguably the top VC firm in China today. I asked Pat how it happened in this interview:

Q: It's not conventional wisdom for a firm like IDG to make the move into venture investing. How and when did you decide to do that?

A: Our research has shown that the rate of growth of the technology market is related to how many new products and services are being introduced into the market.

Entrepreneurial start-ups have the best record of taking the latest technology from the laboratory and bringing it to the market with better price performance or application characteristics than those already available.

Therefore, we decided to help stimulate the growth of the technology market by investing in start-up companies which results in the long run in greater revenue growth and profitability for IDG.

Q: And when specifically did you decide to go into China?

A: IDG's mission is to help people worldwide increase their standards of living, productivity, and quality of life by learning how to acquire and use information technology well. Since China has the world's largest population, we desired to enter China as early as possible.

Fortunately, we were able to establish a joint venture in China in March 1980 to offer technology publications and information services. This was the first joint venture of any type between the U.S. and China.

Q: When I travel through China, I hear about IDG Capital Partners all the time. You're arguably the top venture firm there today. How did that happen?

A: In the early 1990s, a considerable number of people who had left China to get educated in the United States and Europe and had worked for one or more technology companies in the U.S. were beginning to return to China. They wanted to start new companies based on their knowledge of the latest technology and using the marketing methods and business practices that they had learned overseas.

At that time, local Chinese investors were focused on investing in asset-based companies, such as real estate, highway builders, manufacturing equipment producers, etc. They were reluctant to invest in the business founder who only had a paper plan to show them.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BIDU $194.30 0.00%
GOOG $693.01 0.00%
SINA $50.09 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs