China-based Legend Capital and US-based DCM-Doll Capital Management have formed a strategic partnership which will allow both firms to mutually seek out and participate in technology investments in the U.S. and China.

As part of the partnership, DCM co-founder and managing general partner David Chao joined Legend Capital's board of directors and DCM made an undisclosed investment in LC Fund II, a $55 million fund that closed in December 2003. The fund is focused on start-up and expansion stage investments in the IT industry. In addition, Legend Capital managing director Zhu Linan joined DCM's advisory board.

The two firms also disclosed a Series A investment in Worksoft Creative Software Technology, Ltd., a Beijing-based software development services company. This investment marks the third co-investment the firms have closed together in the U.S. and China to date.

"As China's private sector continues to grow at an extraordinary pace, our mission at Legend Capital is to provide meaningful contributions to the development of the high-tech industry and to seed high growth companies in China," said Legend Capital Chief Executive Officer and managing director Zhu Linan. "By partnering with a firm with a track record like DCM's, we are setting up an investment team that has proven success in bringing U.S. and Chinese firms to market."

DCM is an early stage venture capital firm. In the last year, two of DCM's China investments, 51job (JOBS) and SMIC (SMI) completed successful public offerings in the United States. DCM has made three new investments in China since the beginning of the year.