Telecom firm Alcatel starts China tech fund

Telecom equipment maker Alcatel announced Friday that it will invest $9 million to start an $18 million venture capital fund that will focus on investing in telecommunications start-ups in China. Shanghai-based investment firm NewMargin Ventures will manage the fund and add cash to the venture from other funds it operates. The fund will primarily own minority stakes in early-stage start-ups and focus on companies from sectors that include wireless infrastructure, optics and networking gear. Alcatel will provide technology expertise and resources to help evaluate the investment potential of start-ups. --Sam Ames, Special to ZDNet News