Showing posts with label venture capital. Show all posts
Showing posts with label venture capital. Show all posts

Saturday, September 27, 2008

Venture capital investment market and services in china

China being a developing and transitioning country, its venture capital market has some special characteristics.

1. China's venture capital practices lag behind the international norm
The high-tech enterprises in China, relying on various sources of capital, have undergone a difficult process of development. Although China has quite a few high-caliber entrepreneurs in the high-tech industry, a large number of these companies (16,000 in Beijing while 72,000 nationwide) are run by inexperienced individuals.
a) Serious information asymmetry
First, there exists an information asymmetry between the managers of high-tech companies and the outside investors.
Second, there exists an information asymmetry between high-tech companies and venture capital firms. By international practice, both parties should be honest with each other and exchange information openly. After all, the venture capital investors add value by using their management and technological expertise to improve the company's performance.

b) Serious exclusionism
High-tech companies in China, particularly those run by the locals, have a tendency to refuse to cooperate with outside investors.

c) High cost of investment
Chinese high-tech companies, particularly those run by the locals, are mostly under the control of couples or families. These ownership structures make it difficult and costly to follow the customary practice for venture capital investments, under which venture capitalists receive a substantial portion of ownership and control in the companies

2. Company managers, rather than venture capital investors, retain majority control
It is a common practice for the managers of some high-tech companies in China to demand for majority holding in cooperation with venture capital firms. There may be many explanations for such behavior, yet the primary reason lies in the influence of traditional Chinese thinking. This thinking is based on the belief that one will lose control over the company without majority holding or a leadership role in the company.

3. China lacks an infrastructure of service professionals to support venture capital firms
The growth of venture capital involves not only high-tech companies and venture capital firms, but also intermediary agencies such as law firms, accounting firms and assessment centers. Unfortunately, China still lacks agencies that offer proper services to the venture capital community.

At present, venture capital firms in China have to shoulder the multiple tasks of seeking for investment projects, assessing the projects, avoiding legal risks, planning the finances of invested companies and helping the portfolio company to list on the stock market.

4. The legal framework for venture capital investments is inadequate
Although China has set the national strategy of "revitalizing the country through science and education," it has yet to set up a legal framework in support of venture capital investments. The Chinese venture capital community has been growing in the absence of proper protection by law.

5. The Chinese capital markets provides inadequate exit channels for venture capital investments
The returns of a venture capital firm do not depend on yearly dividends but on the acquisition or the initial public offering of its invested companies. Such liquidity events require mature capital markets, which China lacks at present.

venture capital financing
has given rise to a dynamic system of modern financial products and services by introducing a series of innovations.

Friday, September 26, 2008

Venture capital investment market and services in china

China being a developing and transitioning country, its venture capital market has some special characteristics.

1. China's venture capital practices lag behind the international norm
The high-tech enterprises in China, relying on various sources of capital, have undergone a difficult process of development. Although China has quite a few high-caliber entrepreneurs in the high-tech industry, a large number of these companies (16,000 in Beijing while 72,000 nationwide) are run by inexperienced individuals.
a) Serious information asymmetry
First, there exists an information asymmetry between the managers of high-tech companies and the outside investors.
Second, there exists an information asymmetry between high-tech companies and venture capital firms. By international practice, both parties should be honest with each other and exchange information openly. After all, the venture capital investors add value by using their management and technological expertise to improve the company's performance.

b) Serious exclusionism
High-tech companies in China, particularly those run by the locals, have a tendency to refuse to cooperate with outside investors.

c) High cost of investment
Chinese high-tech companies, particularly those run by the locals, are mostly under the control of couples or families. These ownership structures make it difficult and costly to follow the customary practice for venture capital investments, under which venture capitalists receive a substantial portion of ownership and control in the companies

2. Company managers, rather than venture capital investors, retain majority control
It is a common practice for the managers of some high-tech companies in China to demand for majority holding in cooperation with venture capital firms. There may be many explanations for such behavior, yet the primary reason lies in the influence of traditional Chinese thinking. This thinking is based on the belief that one will lose control over the company without majority holding or a leadership role in the company.

3. China lacks an infrastructure of service professionals to support venture capital firms
The growth of venture capital involves not only high-tech companies and venture capital firms, but also intermediary agencies such as law firms, accounting firms and assessment centers. Unfortunately, China still lacks agencies that offer proper services to the venture capital community.

At present, venture capital firms in China have to shoulder the multiple tasks of seeking for investment projects, assessing the projects, avoiding legal risks, planning the finances of invested companies and helping the portfolio company to list on the stock market.

4. The legal framework for venture capital investments is inadequate
Although China has set the national strategy of "revitalizing the country through science and education," it has yet to set up a legal framework in support of venture capital investments. The Chinese venture capital community has been growing in the absence of proper protection by law.

5. The Chinese capital markets provides inadequate exit channels for venture capital investments
The returns of a venture capital firm do not depend on yearly dividends but on the acquisition or the initial public offering of its invested companies. Such liquidity events require mature capital markets, which China lacks at present.

venture capital financing has given rise to a dynamic system of modern financial products and services by introducing a series of innovations.

Sunday, August 31, 2008

China investments in Corporate finance Reverse Merger

The private company can be a wholly owned subsidiary of the public company or the private company can be completely absorbed by the public company. Reverse merger company is trading, the company then has a number of ways to raise additional funds.



In a reverse takeover, shareholders of the private company purchase control of the public shell company and then merge it with the private company. The publicly traded corporation is called a "shell" since all that exists of the original company is its organizational structure. The private company shareholders receive a substantial majority of the shares of the public company and control of its board of directors.

Advantages of Going Public through a Reverse Merger:

Increased Valuation: Typically publicly traded companies enjoy substantially higher valuations than private companies.
Capital Formation: Raising capital is usually easier because of the added liquidity for the investors, and it often takes less time and expense to complete an offering.
Acquisitions: Making acquisitions with public stock is often easier and less expensive.
Incentives: Stock options or stock incentives can be useful in attracting management and retaining valuable employees.
Financial Planning: Public company stock is often easier to use in estate planning for the principals. Public stock can provide a long term exit strategy for the founders.

A china Reverse Merger is a transaction where by the private company shareholders may gain control of a public company by merging it in with their private company. The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. Please visit online www.dynastyresources.net in NewYork city.

Wednesday, August 27, 2008

China outsourcing Venture capital market in China investments

New developments in science and technology are bringing about sweeping changes to the world economy. These changes are ushering in a new economy by fostering innovations in business models, business concepts, products and services. Development of the new economy calls for a constant inflow of capital.



Venture capital financing, a specialized form of financing, has come to fill the void. Venture capital firms invest in equity interests in high-tech start-up companies. Venture capital firms make up for a defect in traditional financing channels, which do not provide sufficient funds for high-risk and long-term investments in new technologies. 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 optimal risk sharing, 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.

The Chinese venture capital industry started in the mid-1980s when the government decided that it should develop various high-technology industries. The company has performed well due to its adoption of internationally recognized rules and procedures of venture capital business, the strong local government support, the diversity of its shareholders, an optimal configuration of various resources, an excellent investment team, and a first-class R&D group.

The flow of venture capital financing in China is now determined by market forces and follows international trends. This recent development has reduced the systemic risk in venture investing to a lower level. In addition, the Chinese venture capital community has been actively exploring new venture capital paradigms that reflect China's needs and also the current international environment. Please visit online www.dynastyresources.net in NewYork city.

Monday, August 25, 2008

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 www.dynastyresources.net in NYC city.

Wednesday, August 20, 2008

China corporate finance, China IPOs, China SPAC, China reverse merger

SPACs, Special Purpose Acquisition Companies, are investments vehicles that allow public investors to invest in areas sought by private equity firms. SPACs are shell or blank-check companies that have no operations but that go public with the intention of merging with or acquiring a company with the proceeds of an initial public offering. A SPAC is similar to a reverse merger. However, unlike reverse mergers, SPACs come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers.



SPACs raise blind pool money (most of which goes into a trust) from the public for an unspecified merger, sometimes in a targeted industry. The SPAC raises money to go public first, then looks for a private company to buy usually in the high-tech sector. SPACs serve an important role in bringing new technology to the market.

Dynasty also makes available access to exchanges in Continental Europe, Latin America, the United Kingdom, Canada and parts of the Asia-Pacific region. Clients can trade foreign securities in either US dollars or a variety of foreign currencies including Euros, Canadian Dollars, Swiss Francs, and British Pounds Sterling.

A special purpose acquisition corporation, commonly known as a “SPAC,” and formally a “development stage company,” is generally incorporated with the primary objective of raising funds through a public offering of its securities primarily for purpose of acquiring one or more operating companies. Please visit online www.dynastyresources.net in NewYork city.

Sunday, August 10, 2008

China outsourcing Venture capital financing

Venture capital is money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors. Venture capital is an important source of equity for start-up companies. Venture capitalists only invest in a small percentage of the businesses they review and have a long-term perspective.



Venture capitalists generally:

Finance new and rapidly growing companies;
Purchase equity securities;
Assist in the development of new products or services;
Add value to the company through active participation;
Take higher risks with the expectation of higher rewards;
Have a long-term orientation

Dynasty’s venture capital and private equity partners specialize in China investments, everything from tech startups to joint ventures with State Owned Enterprises. Dynasty matches you with experienced investors with a proven track and a common mission: to create entrepreneurial returns on capital by investing in and helping build companies that have scalable business opportunities in the global Chinese economy.

venture capital financing is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a debt offering. Venture capital typically comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms. Venture capital (also known as VC or Venture) is a type of private equity capital typically provided to immature, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. Please visit online www.dynastyresources.net in NewYork city.

Thursday, August 7, 2008

Dynasty resources reverse merger and SPAC

A special purpose acquisition corporation, commonly known as a “SPAC,” and formally a “development stage company,” is generally incorporated with the primary objective of raising funds through a public offering of its securities primarily for purpose of acquiring one or more operating companies. SPACs, Special Purpose Acquisition Companies, are investments vehicles that allow public investors to invest in areas sought by private equity firms. The SPAC must sign a letter of intent for a merger or an acquisition within 12 to 18 months of the IPO. Special Purpose Acquisition Companies raise blind pool money from the public for an unspecified merger, sometimes in a targeted industry.



A SPAC is similar to a reverse merger. However, unlike reverse mergers, Special Purpose Acquisition Companies come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are essentially set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers.

Special Purpose Acquisition Companies corporate finance are shell or blank check companies that have no operations but that go public with the intention of merging with or acquiring a company with the proceeds of an initial public offering. A SPAC is similar to a reverse merger. However, unlike reverse mergers, SPACs come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers. Please visit online www.dynastyresources.net in NewYork city.

Friday, August 1, 2008

Financial decisions corporations corporate finance

Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while reducing the firm's financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.



The discipline can be divided into long-term and short-term decisions and techniques. This subject deals with the short-term balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers). Dynasty resources ongoing research into the characteristics of high-performance businesses indicates that these organizations have sophisticated capabilities in strategically important business functions including finance.

Corporate finance group deals with medium and large corporate clients and offers complete solutions to meet our clients' financial requirements. Our expertise includes syndication and structuring of complex deals for our clients. Our corporate finance offerings assist CFO's to better understand their organization’s finance function, improve efficiency and effectiveness with asset-powered solutions and align the finance function with the strategic objectives of the organizations, Dynasty resources leading practices and corporate finance offerings will help you on your journey to achieve high performance.

This article from corporate finance the Investment FAQ discusses stocks, specifically reverse mergers. Information and knowledge is your best tool whether you are seeking to go through the process of a reverse merger or whether you are looking for a good investment. IPO formations and public floats with full SEC compliance to enable a public float for your business. Please visit online www.dynastyresources.net in NewYork city.

Tuesday, July 15, 2008

High potential and quality service venture capital in china

Venture capital is a type of private equity capital typically provided to immature, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. Venture capital typically comes from institutional investors and high net worth individuals and is pooled together by dedicated investment firms.



Dynasty Resources is your Gateway to business in China. Through partnerships with top companies, each specializing in a unique area of China business, Dynasty provides quality services that help you enter the most exciting market on earth. Dynasty’s venture capital and private equity partners specialize in China investments, everything from tech startups to joint ventures with State Owned Enterprises.

Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a debt offering. Dynasty matches you with experienced investors with a proven track and a common mission: to create entrepreneurial returns on capital by investing in and helping build companies that have scalable business opportunities in the global Chinese economy.

Dynasty’s china venture capital partners invest in many industries, including technology, real estate and energy efficiency, among others. Please call for a free consultation. Tens of billions dollars of Foreign Direct Investment are poured into China every year; investors are betting on China because they know it’s the most lucrative market in the world. Making the right investment, however, requires the guidance of professionals who understand the Chinese mindset and the local business climate. Please visit online www.dynastyresources.net in NewYork city.

Monday, July 14, 2008

Environmental friendly and quality services in nyc

Dynasty Resources is your Gateway to business in China. Through partnerships with top companies, each specializing in a unique area of China business, Dynasty provides quality services that help you enter the most exciting market on earth. In addition to its efforts to help integrate Chinese companies into the American market, Dynasty also works to aid US businesses in China, particularly in the clean energy and clean technology sectors, where the firm thinks there is enormous potential for growth.



The firm is now working to broker a deal between a Hong Kong company that has found a cheaper, more environmentally friendly way to produce particleboard. Dynasty has paired the company with US and British investors. One way in which Dynasty aids both US and Chinese businesses in China is by helping secure investment capital from overseas sources. We work with you every step of the way, facilitating entrance to a nation whose culture, legal system and mindset differ from that of the West.

The china corporate finance Hong Kong firm sought out Dynasty to find a way to secure financing for it and after taking a look at the company's business plan, Dynasty agreed to help. A great horde is amassing in the People's Republic of China. The laowai, or outsiders, are BlackBerry-toting investment bankers, business executives, corporate attorneys, venture capitalists and private equity executives, all seeking to tap private investment opportunities in the world's fastest growing economy. But the battery of foreign dealmakers may get more than they bargained for in China. Please visit online www.dynastyresources.net in NewYork city.

Friday, July 11, 2008

Domestic and international China financial services

Dynasty Resources is your Gateway to business in China. Through partnerships with top companies, each specializing in a unique area of China business, Dynasty provides quality services that help you enter the most exciting market on earth. The competition is increasing from domestic and international, traditional, and non-traditional players in the China market.

Dynasty Resources and its financial partners provide the following financial services to Chinese companies:

1. Go public in the United States and become listed on the NASDAQ, the NYSE or Pink Sheets. There are several ways of accomplishing this. Reverse mergers are the most common and least costly method. Please see below for more on Reverse Mergers.

2. Go public in Europe or in the United States by way of Luxembourg, whose rules and regulations are lenient and tax laws are beneficial.

3. Go public by way of a SPAC Special Purpose Acquisition Company. A SPAC is a shell or blank-check company that has no operations but that goes public with the intention of merging with or acquiring a company with the proceeds of an initial public offering.

4. Provide venture capital / private equity investments from top US firms that specialize in China. Investment targets must be profitable and willing to undergo screening by internationally recognized accounting firms.

The china corporate finance financial services increased internationalization and privatization of China's financial system is focusing the attention of institutions and regulators on performance and risk management. New and often competing information technologies promise cost savings, increased efficiency, real-time knowledge, and enhanced access to customers. Please visit online www.dynastyresources.net in NewYork city.