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	<title>Xconomy &#187; Global Expansion</title>
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	<link>http://www.xconomy.com</link>
	<description>Business + Technology in the Exponential Economy</description>
	<pubDate>Mon, 23 Nov 2009 05:01:42 +0000</pubDate>
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		<title>Seattle-Area Wireless Companies (and Others) Look to Innovate, Expand in China</title>
		<link>http://www.xconomy.com/seattle/2008/12/17/seattle-area-wireless-companies-and-others-look-to-innovate-expand-in-china/</link>
		<pubDate>Wed, 17 Dec 2008 07:27:59 +0000</pubDate>
		<dc:creator>Gregory T. Huang</dc:creator>
				<category><![CDATA[National blog main]]></category>
		<category><![CDATA[Seattle]]></category>
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		<category><![CDATA[Global Expansion]]></category>
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		<description><![CDATA[A couple of news tidbits involving China in the past week have made me look more closely at what local startups and companies are doing to expand there. On Thursday, Seattle-based Airbiquity, a wireless communications firm focused on the auto industry, announced it has entered the Chinese market, branding itself locally as Ai Bi Ke [...]]]></description>
			<content:encoded><![CDATA[ 
		<div style="text-transform:uppercase"><a href="http://www.xconomy.com/tag/global-expansion/">Global Expansion</a>, <a href="http://www.xconomy.com/tag/Mobile/">Mobile</a>, <a href="http://www.xconomy.com/tag/China/">China</a></div>
		<a href='http://www.xconomy.com/?attachment_id=6993' rel="attachment wp-att-6993"><img style="float:right;margin: 0px 0 5px 15px;" src="http://www.xconomy.com/wordpress/wp-content/images/2008/12/shanghai-night-180x124.jpg" alt="Shanghai at night" title="Shanghai at night" width="180" height="124" class="alignnone size-thumbnail wp-image-6993" /></a> 
		<strong>Gregory T. Huang wrote:</strong>
		<p>A couple of news tidbits involving China in the past week have made me look more closely at what local startups and companies are doing to expand there. On Thursday, Seattle-based Airbiquity, a wireless communications firm focused on the auto industry, <a href="http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&amp;newsId=20081211006176&amp;newsLang=en">announced</a> it has entered the Chinese market, branding itself locally as Ai Bi Ke Communications Technology and setting up an office in Chengdu. The move makes good sense, given China&#8217;s burgeoning car culture.</p>
<p>And yesterday, Seattle-based wireless startup Movaya announced its Chinese mobile-development team, also in Chengdu, <a href="http://www.xconomy.com/seattle/2008/12/16/pressok-movaya-team-up-for-mobile-games/">is teaming up with PressOK Entertainment&#8217;s software teams</a> in Russia and Belarus to develop mobile games. Ken Myer, <a href="http://www.xconomy.com/author/kmyer/">the CEO of the Washington Technology Industry Association</a> (WTIA), told me last month that he thinks the Chinese market for mobile games is pretty far behind the U.S.&#8212;but <a href="http://www.xconomy.com/seattle/2008/11/19/going-global-ken-myer-of-wtia-talks-china-trip-mobile-market-and-achievement-awards/">it could be a good time to get in</a> on other mobile software applications.</p>
<p>Not sure what it all means yet, but it&#8217;s clear there&#8217;s a pattern. Chinese talent, companies, and market opportunities are becoming more embedded in the fabric of Seattle-area innovation. While the economic downturn could lead more U.S. companies to outsource jobs and services, they are also trying to tap a new global market. And on the flip side, Chinese universities and companies are looking to develop leadership roles and move up the value stream. It&#8217;s a compelling situation to watch.</p>
<p>A few other recent highlights:</p>
<p>&#8212;Bellevue, WA-based Formotus and Seattle-based Mobile Semiconductor talked to me about <a href="http://www.xconomy.com/seattle/2008/10/14/five-seattle-area-companies-and-an-apprentice-join-wtias-mobile-mission-to-china/">building relationships with strategic investors and partners in China</a>. The mobile companies were part of a five-company WTIA contingent that toured China in October. One key takeaway was that building these relationships and understanding the market takes time and patience.</p>
<p>&#8212;Issaquah, WA-based McObject, a maker of data management software, <a href="http://www.mcobject.com/September17/2008">has expanded</a> in China this fall, adding a team in Beijing doing work on embedded databases. McObject, which was also part of the WTIA tour, already has a presence in the Chinese market, but is looking to accelerate its growth there.</p>
<p>&#8212;Oberon Media, a New York-based developer of games and platforms with a Seattle publishing office (I-Play), <a href="http://www.xconomy.com/seattle/2008/10/06/oberon-maker-of-casual-games-and-platforms-scores-20m-investment-chinese-partnership/">scored a $20 million strategic investment from Hong Kong-based Infinity Equity</a> in October. The partnership represents a strong effort to establish an Oberon presence on the ground in China.</p>
<p>&#8212;It&#8217;s definitely not just about outsourcing anymore. Bellevue-based Intellectual Ventures, headed by Nathan Myhrvold and Edward Jung, <a href="http://www.xconomy.com/seattle/2008/10/03/nathan-myhrvold-co-on-tour-as-intellectual-ventures-opens-offices-across-asia/">has opened an office in Beijing</a>. Its goal is to work with local universities and institutes to help commercialize inventions, as well as keep tabs on foreign competition for ideas and intellectual property. The company&#8217;s Asian expansion is being led by global technology head Patrick Ennis, <a href="http://www.xconomy.com/seattle/2008/12/11/how-to-invent-tips-on-global-technology-from-patrick-ennis-of-intellectual-ventures-part-1/">who spoke with me recently</a>.</p>
<p>&#8212;Microsoft Research Asia, based in Beijing, <a href="http://www.xconomy.com/seattle/2008/11/05/microsoft-research-asia-turns-10-looks-to-innovate-in-multimedia-cloud-computing-ads/">celebrated its 10th anniversary last month</a>. The lab has become an epicenter for computer-science research in several areas, including graphics, user interfaces, multimedia, search and advertising, and now cloud computing and theory. Three of the lab&#8217;s managing directors have gone on to become Microsoft vice presidents in Redmond.</p>
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		<title>The Italian Job, Part One: Startup Designer H-Farm Comes to Seattle</title>
		<link>http://www.xconomy.com/seattle/2008/09/22/the-italian-job-part-one-startup-designer-h-farm-comes-to-seattle/</link>
		<pubDate>Mon, 22 Sep 2008 10:30:22 +0000</pubDate>
		<dc:creator>Gregory T. Huang</dc:creator>
				<category><![CDATA[National blog main]]></category>
		<category><![CDATA[Seattle]]></category>
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		<description><![CDATA[Sometimes you just have to write the story even when you don&#8217;t know all the details yet. This is one of those times. This is the story of H-Farm, an Italian design and investment firm, coming to America.
But it&#8217;s only Part One of the story&#8212;a preview, really. That&#8217;s because it won&#8217;t be until next month [...]]]></description>
			<content:encoded><![CDATA[ 
		<div style="text-transform:uppercase"><a href="http://www.xconomy.com/tag/startups/">startups</a>, <a href="http://www.xconomy.com/tag/incubators/">incubators</a>, <a href="http://www.xconomy.com/tag/global-innovation/">Global Innovation</a></div>
		<a href='http://www.xconomy.com/?attachment_id=4993' rel="attachment wp-att-4993"><img style="float:right;margin: 0px 0 5px 15px;" src="http://www.xconomy.com/wordpress/wp-content/images/2008/09/h-farm-logo.jpg" alt="H-Farm logo" title="H-Farm logo" width="107" height="101" class="alignnone size-thumbnail wp-image-4993" /></a> 
		<strong>Gregory T. Huang wrote:</strong>
		<p>Sometimes you just have to write the story even when you don&#8217;t know all the details yet. This is one of those times. This is the story of <a href="http://www.h-farm.it/">H-Farm</a>, an Italian design and investment firm, coming to America.</p>
<p>But it&#8217;s only Part One of the story&#8212;a preview, really. That&#8217;s because it won&#8217;t be until next month that I sit down with Riccardo Donadon, the founder of H-Farm, when he visits Seattle. In the meantime, my Italian isn&#8217;t what it used to be, so I can&#8217;t just call up the company and start asking questions (OK, I never could). So in case I missed something, please do comment or let me know.</p>
<p>The story begins in 2005, when Donadon founded H-Farm as the first private Italian incubator of startups. Before that, he was an Internet entrepreneur, having created the online shopping site Mall Italy Lab (sold to Infostrada in 1999) and E-Tree (sold to Etnoteam Group in 2001). He started H-Farm in the scenic countryside of Cà Tron, near Venice and his hometown of Treviso. The company&#8217;s second principal, Maurizio Rossi, joined as an investor. Rossi came from the fashion and design industry, having worked for LVMH and sports-brand marketing firm Vista Point.</p>
<p>It&#8217;s an intriguing combination of design and technology expertise&#8212;and it shows in the eight or so companies that have been incubated by H-Farm so far. The group includes H-art, an interactive media company that does design for high-end brands like Gucci and Armani, and Zooppa, a user-generated advertising firm. H-Farm&#8217;s portfolio also has startups in mobile, graphics, consumer Internet, and retail&#8212;including social-shopping site <a href="http://www.xconomy.com/seattle/2008/09/19/wishpot-wants-your-wish-list-to-go-everywhere-with-you-on-the-web/">Wishpot, based in Seattle and profiled here last week</a>.</p>
<p>Which brings us to an even bigger Seattle connection. It turns out H-Farm isn&#8217;t just an incubator. &#8220;Using design thinking,&#8221; the company&#8217;s website says, &#8220;H-Farm is going to develop a worldwide interconnected network of innovative technology and new media start-ups.&#8221; In other words, besides spinning off companies, H-Farm seems to want to help its U.S. startups gain a foothold in the European market, while also introducing its broader portfolio to U.S. customers&#8212;and that requires setting up an office here.</p>
<p>Last month, H-Farm started renting office space near Seattle&#8217;s Pioneer Square&#8212;sharing it with Wishpot and another startup in stealth mode. It is H-Farm&#8217;s only office in the U.S., and the company plans to make it the major center of operations outside of Italy. H-Farm&#8217;s website says, &#8220;This operation will endow it with the possibility of significant growth on the other side of the Atlantic as well as the chance to increase its projects and activities.&#8221; Why Seattle? Max Ciccotosto, Wishpot&#8217;s co-founder, says, &#8220;They&#8217;d looked in the Bay Area, but they really got feedback that Seattle was the right market for them.&#8221;</p>
<p>To me, the West Coast makes sense for H-Farm&#8217;s expertise, and I suspect the choice of Seattle boiled down to personal and business relationships in the area. Ciccotosto, a native of Italy, says he originally met H-Farm last year through one of his investors, Rob Monster of <a href="http://www.monsterventure.com/">Monster Venture Partners</a>. &#8220;Rob said, &#8216;There&#8217;s a guy [from H-Farm] coming from Venice, can you meet him?&#8217;&#8221; It turned out Ciccotosto was going to a fashion-industry party hosted by Nordstrom&#8217;s that night, so he relayed the message to the H-Farm visitor, a senior employee named Marco Janeczek (who was born in Poland but raised in Italy). Evidently, the cocktails and fashion models were a hit&#8212;and pretty soon Ciccotosto was on his way to securing a Series A investment from H-Farm. The Italian firm has also gained several advisors around town, so it&#8217;s a well-connected operation.</p>
<p>I&#8217;ll be getting the scoop on H-Farm&#8217;s local strategy from Donadon soon. In the meantime, it doesn&#8217;t look like the firm is soliciting wide-ranging funding proposals from early-stage startups, à la incubators like <a href="http://www.xconomy.com/seattle/2008/06/20/one-founders-opinion-internet-entrepreneur-andy-sack-says-seattle-startups-need-less-money-more-mentoring/">Founder&#8217;s Co-op</a> or <a href="http://www.xconomy.com/boston/2008/05/03/as-y-combinator-prepares-to-open-summer-camp-paul-graham-speaks/">Y Combinator</a>, which we&#8217;ve been covering at Xconomy. So its role in the local innovation community is less clear at this point, but its outside perspective could be valuable. &#8220;These guys come with heavy global expertise,&#8221; says Ciccotosto.</p>
<p>H-Farm <em>is</em> accepting proposals through the end of September in a very specific area: <a href="http://www.h-farm.it/ourproject.aspx?menu=8&amp;title=startup_campaign">new applications</a> for the Apple iPhone. The company says it has received more than 100 proposals so far, and will invest $250,000 in the winner(s). It also says it will make a new call for proposals in October, in an area yet to be announced, so stay tuned.</p>
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