In 2011, global enterprises raised $5.9 billion in venture capital. Government-backed venture capital funds followed government agendas and invested in major infrastructure projects that allowed venture to thrive, such as technology parks, innovation centers, and laboratories. Since PRC government agencies first started targeting infrastructure, technology, and science research and development (R&D) for domestic investment in the 1980s, the venture capital industry has evolved to become more popular with private and foreign investors that hope to capitalize on the growth of the Chinese market. Although building partnerships takes time, attention to detail, openness, communication, cultural sharing, and well-defined expectations, new venture capital firms are demonstrating that these partnerships can be successful. US-China cross-border venture partnerships provide a framework to bring both industries together to participate in the future economic and market growth of both countries. Chinese investors are seeking growth outside their home market, and trying to make efficiency improvements domestically that would equate to higher financial and non-financial returns, such as job creation, infrastructure construction, community building opportunities, and educational and professional training improvements. At the same time, PRC government limits on investments in real estate and stock markets and a lack of alternative assets have increased investors’ appetites for cross-border venture partnerships. Institutional limited partners and US venture capital industry investors are starting to look for new models, managers, and emerging economies for growth. Venture capital encourages private investment, stimulates private consumption, and supplies global public markets with viable, high-growth enterprises. These projects are an early indication that venture capital partnerships between the United States and China will be the future driver for increased capital gains and significant investment returns. Silicon Valley, New York, and Shanghai have served as cross-border incubators for early stage companies focused on bringing US technology to Chinese markets and vice versa. by Tharon SmithChinese and US enterprises are searching for ways to collaborate and build high-performing global companies, and partnerships are the next step for realizing growth and capital returns. US and Chinese venture capital firms can help each other access broader markets and realize higher returns on their investments.
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