U.S. policy errors crimping venture capital-exec

By Jeffrey Hodgson

HONG KONG, Nov 15 (Reuters) - Asia should avoid the policy mistakes hindering the growth of the U.S. venture capital sector as it seeks to develop the industry locally, an executive with venture capital firm Kleiner Perkins Caufield & Byers said on Thursday.

These include high cost of going public, caused by the stringent requirements of U.S. Sarbanes-Oxley legislation, and overly restrictive immigration policy, added Ted Schlein, a managing director with the California firm.

"(In terms of) fostering a friendly regulatory system, we have done a lot to hurt that inside the United States," he told an industry conference in Hong Kong.

"These are things please don't copy (from) the U.S., because I don't think it's in your best interests. Or try to head them off and avoid them."

Schlein is also the chairman of the U.S. National Venture Capital Association, which serves as the industry's lobby group.

Kleiner Perkins is best know as an early backer of silicon valley success stories including Google Inc., Amazon.com, Netscape and Sun Microsystems.

It was back in the headlines this month when it announced former U.S. vice president and co-winner of the Nobel Peace Prize Al Gore would become a partner.

The firm made a major bet on Asia in April when it announced it would enter the high growth Chinese market with a $360 million fund and a team of veteran local investors.