Venture capital and the financing of China's new technology firms
Author: Zhang, Wei ; Gao, Jian ; White, Steven ; Vega, PaulINSEAD Area: Asian Business and Comparative Management ; Entrepreneurship and Family Enterprise ; Entrepreneurship and Family Enterprise ; Entrepreneurship and Family Enterprise Series: Working Paper ; 2006/63/EFE/ABCM Publisher: Fontainebleau : INSEAD, 2006.Language: EnglishDescription: 31 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The emergence of new technology-based firms and a new system for financing those firms represents a key development in China's transition. This chapter traces the interacting domestic and global institutional forces that have given rise to China's particular form of venture capital. While we believe that China's still-evolving venture capital sector is on a trajectory that is broadly convergent with a US model, there are significant elements of both structure and process that reflect China's unique institutional environment. Some of these differences represent lingering institutional factors and, given broader changes underway in China, inefficiencies that are likely to disappear over time. Other differences, however, represent rational responses and efficient means for financing the types of new technology firms that local entrepreneurs are founding, given the local institutional environment. While we can identify important challenges to both the venture capital system and China's new technology start-ups, we see the overall trajectory as positive for China's economic development. Moreover, we see venture capital as being a catalyst for a new form of management to emerge and spread in China.| Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Digital Library | Available | BC007757 |
The emergence of new technology-based firms and a new system for financing those firms represents a key development in China's transition. This chapter traces the interacting domestic and global institutional forces that have given rise to China's particular form of venture capital. While we believe that China's still-evolving venture capital sector is on a trajectory that is broadly convergent with a US model, there are significant elements of both structure and process that reflect China's unique institutional environment. Some of these differences represent lingering institutional factors and, given broader changes underway in China, inefficiencies that are likely to disappear over time. Other differences, however, represent rational responses and efficient means for financing the types of new technology firms that local entrepreneurs are founding, given the local institutional environment. While we can identify important challenges to both the venture capital system and China's new technology start-ups, we see the overall trajectory as positive for China's economic development. Moreover, we see venture capital as being a catalyst for a new form of management to emerge and spread in China.
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