A global venture capitalist that has successfully invested in information technology (IT) enterprises listed in the Nasdaq stock market is looking into possible investments in biotechnology start-ups that have huge profit growth potentials.

"ICCP will seek out opportunities. We also invest in start-ups," said Daniel C. Pagulayan, ICCP Venture Partners Inc. (IVP) executive director.

Pagulayan said IVP has looked into possible financing for five biotechnology projects in 2005 and looks forward for more such projects, admonishing though that the Philippines has a lot of catching-up to do in the sector.

It is still wary about making false impressions that any venture can be funded by the international investing firm, but spots potential in these efforts.

"We don't have a critical mass in biotechnology in the Philippines. If we can see 100 proposals a year, and approve only two, over time, we will just have created more enemies," he said.

Possible investments in biotechnology are in medical services even as the company has tapped advisers in biotechnology including Dr. John Tan associated with vaccines research in New York who has identified the SARS and bird flu virus. It also has advisers from themedical professional in Seton Medical Center.

Other potential sectors are in food and beverage, agribusiness, industrial manufacturing and services, and tourism.

IVPI's investee partners are Marvell Technology in Sunnyvale, California, designer of integrated circuits (IC); Wireless Link in Calgary, Canada, global positioning system (GPS) provider; SiRF Technology, Santa Clara, California, GPS chips supplier; Stream Machine, Dallas, Texas, IC manufacturer; and Inphi Corp., Los Angeles, California, high speed transponder chip developer.

For biotechnology-related company, IVPI partners with Bioimagene which operates in San Mateo, California and Pune, India. Bioimagene has been developing tools for the treatment of cancer and other chronic diseases.

IVPI particularly looks for investment opportunities that have prospective earnings growth of 15 to 25 percent per annum and firms with profitability record for three years of operations.

Start-ups can be invested in for as long as these have clear path to revenue growth and could generate future earnings that could support dividend payments, expansion, and attractive internal rate of return upon exit.

Venture capital firms, according to Pagulayan, has a normal life span of 10 years, after which funders should have divested in the business.

"We'd like to see profits reinvested or sell high on an investment. We don't invest once and forget it. We make sure we still have investment money for subsequent ventures," he said.

IVP also invests in projects that are anchored on the expertise of the entrepreneur or management team which is somehow enough to mitigate many risks in start-ups even if the venture has no earnings history.

A simple model is a project that is defensible, best of breed, with defined core competence and its management has commitment to global best practices and has like-mindedness with investors.

Other investees of the company are Berkana Wireless, San Jose, California, integrated radio frequency developer; Authosis, Hongkong, China, IC designer; Ambergris Solutions, call center provider acquired by Telus of Canada/Singapore Computer; Teja Technologies, San Jose, California, software platform developer; Hawaii Superferry; Alphion Corp, New Jersey; Startup Capital Ventures, Silicon Valley; Level Up International; Ionics Inc.; Iomni Precision Inc; and Shopwise.