Dang Dang, China's top seller of books since 1999, has since branched out into music, DVDs, software, and even electronic goods, jewelry and kitchenware targeting China's new young consumers as seen in this image. Doll Capital Management, Walden International, and Alto Global Investment, each took a 12 percent stake in the red hot online retailer providing an additional $27 million third round Series C funding to strengthen sales and perhaps pave the way for a possible IPO filing next year.

According to Red Herring, Dang Dang's first venture money came from IDG, Softbank, and Luxembourg Cambridge Holding Group-followed in late 2003 by an $11-million injection from the U.S.-based Tiger Technology Fund. Tiger Technology hedged its B2C bets, investing $6.2 million in rival online retailer Joyo.com, which was acquired by Amazon less than a year later for $75 million.

CVN musings.

For an excellent summary of China's software industry read Dan Ilett's special report at Silicon.com. The intrepid reporter cites that " there are ore than 13,000 companies producing software in China." CVN also recommends Phil Lin's blog.
Lin is an adjunct professor at Columbia Business School and always offers insightful comments on China's new media developments.