Sequoia funds Cernet expansion programme

Sequoia, a United States venture capital firm that invested in Yahoo and Google, has provided financing for the expansion plans of Cernet Koncept Network, a mainland internet company targeting the country's 27 million college students, sources said.

Cernet Koncept, operator of cdrean.com, is a subsidiary of the China Education and Research Network, a state-backed agency in charge of internet infrastructure construction on college campuses nationwide.

Neither Sequoia nor Cernet would disclose the financing amount but it was definitely a double-digit million US dollar capital infusion, according to Cernet Koncept chief executive Kuang Peng.

'Cernet is a one-of-a-kind company that enjoys a monopoly in its area,' said Neil Shen, founding managing partner of Sequoia Capital China. 'We are bullish on its outlook.'

The fund would be used to develop new valued-added services to cater to mounting demands for information and recreation among college students, Mr Kuang said.

On the mainland, telecommunications operators provide customers internet access but the Ministry of Education set up the China Education and Research Network to build 'information highways' for university students. Nearly 27 million students connect to the internet via the separate network, which covers 3,500 schools and research institutions nationwide.