Understand the differences between Chinese VC and US VC

THE OBJECTIVES OF VCs. DIFFERENCES IN BEHAVIOUR

VCs are money driven. They want fast revenue and fast results. Whilst, VCs in other countries are worried about having strategic variety in their portfolio, in China, it’s all about the money.


As there is always a concern about the money, investors will consider the possible scalability of the project, the exit phase, and if possible, to make an IPO of the company in the future.


There is not a big difference between Chinese VCs and Western VCs.

The main difference is between the different VCs inside the Chinese investing firms. How they behave depends on their industry and on their goal; in China, there are no rules governing which steps they will follow or on the movements they will make.

The only thing that all Chinese VCs have in common is that they want to have as much control as possible inside the company and have power in the terms of the contract. In order to have more control they will often give you cash by the bucket loads so that they can be in charge of everything. So when it comes to Chinese VCs the age-old question is: What do you want? More money or more control?

source the nxbode