Fund Ownership, Investment Preference, and Performance: The Venture Capital Industry in China



The venture capital (VC) industry has emerged and grown in China accompanying the development of the Chinese market economy Based on observations, the founding stage of the industry is during the period 1985–1997, when VCs were funded mostly by state capital, while a few foreign VCs, such as IDG, had just started to enter the Chinese market. The early developing stage spans 1998–2005, coinciding with the Internet investment boom in the United States, when a large number of oversea returnees brought capital back to China to create thousands of Internet companies.


Venture Capital Initial Public Offering Exit Channel Target Firm Ownership Type 
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© Douglas Cumming, Michael Firth, Wenxuan Hou, and Edward Lee 2015

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