Venture Capital Investments in China Consultant Marketing in China

Venture capital has been widely studied in the U.S. and Europe, but only recently it has received greater attention in China. As China’s private sector continues to grow, venture capital funds have directed increasing attention to small- and medium-sized technology based firms.

Venture capital in China has many interesting differences from that in Western countries. Venture capital is the term for money invested in young, fast growing companies. VCA members comprise venture capital firms, institutional investors, banks, incubators, angel groups, corporate advisors, accountants, lawyers, government bodies, academic institutions and other service providers to the venture capital and private equity industry.

Venture capitalists are typically very selective in deciding what to invest in; as a rule of thumb, a fund may invest in one in four hundred opportunities presented to it. Funds are most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of providing the financial returns and successful exit event within the required timeframe that venture capitalists expect.

Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a debt offering. Venture capital typically comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms.

venture capital financing investments are generally made as cash in exchange for share in the invested company. Venture capital is a type of private equity capital typically provided to immature, high-potential, growth companies in the interest of generating a return through a;n eventual realization event such as an IPO or trade sale of the company. Please visit online in NewYork city.