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How this Durham firm bagged a Beijing investor to fund operations
- Lauren K. Ohnesorge
- Staff Writer- Triangle Business Journal
- Email | Twitter
Can’t find an investor? Look outside the United States.
A Durham startup just proved it’s possible to get cash from Asia.
So I got the CEO to walk me through it so you know what to expect.
Anthony Atti, CEO of Durham cleantech Phononic Devices, which just raised $21 million in an equity round led by Beijing-based Tsing Ventures, tells me it’s a different ball game, but definitely one you can win.
It still starts with that pitch.
And to make it, you’ve got to become a world traveler — email and phone calls won’t get you the cash.
“It takes boots on the ground, time in-country to build those relationships,” Atti says. “It was not easy…. Let’s just say I racked up a gazillion frequent flyer miles this year.”
So if you don’t have the cash to travel, Asian investment isn’t an option. Additionally, it helps to have experience with successful pitches.
After all, the $21 million round wasn’t Atti’s first venture capital success, as he’d already raised more than $15 million in the U.S. from the likes of Venrock and Oak Investment Partners on what he refers to as the “venture capital road show.”
But in Asia, conversations with investors take on a different tune. And it surprised Atti.
“Sadly, some of my surprises are more disappointing as an American,” he notes. “ And I’m as red white and blue entrepreneurial as they come.”
The big surprise came in the questions- what Chinese investors would ask as opposed to investors in the United States.
“Almost all the questions in diligence from Asian investors tend to be, ‘how big can you get and how quickly?’” he says. “All questions are from a growth and time perspective.”
Lauren Ohnesorge covers technology, biotechnology and Durham County.
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