Private and Equity Venture Capital Financing in China


China has achieved extraordinary economic success over the past 25 years, with an average annual GDP growth rate of more than 9%. However, this dramatic economic growth has been gained at the expense of a tremendous consumption of natural resources, low levels of economic efficiency, an inferior productivity rate, and serious environmental pollution.

The China Venture Capital and Private Equity Forum, an annual gathering of global private equity and venture capital investors with an interest in China, is the largest, most comprehensive, and most authoritative forum of its kind and is the most up to date in the range of topics and issues that are covered. The Chinese government has gradually embraced the concept of knowledge economy and is introducing a series of policies to encourage the development of the venture capital industry.

General features of venture capital investment

1. Venture capital involves direct investment in high-tech companies and start-ups

Characterized by high risks and high returns, venture capital lays the foundation of a start-up company for future investment returns and capital appreciation.

2. Venture capital investment occurs in phases

The development of a product can be divided into four periods: seed, start-up, grow-up, and maturity.

3. Venture capital is characterized by professional investment

a) Venture capital, as a specialized investment product, calls for professional investment and management so that the relatively high risks involved are reduced.

b) High returns for venture capital investments are a result of the sweat equity, expertise and experience provided by the investors.

venture capital financing has given rise to a dynamic system of modern financial products and services by introducing a series of innovations that include professional investment, participation in management, long term shareholding, and the institution of venture capital financing has become indispensable in modern technological industrialization. In fact, it can be argued that a new financial system based on venture capital financing and a new industrial sector based on high technologies form the two pillars of the new economy. Please visit online in NYC city.