Why does WI Harper prefer to act as the sole investor and often the only investor in the first stage of a business? How do you manage the risks involved?

WI Harper invests in businesses that are in their early stages of either development or expansion. We are the sole investor in 70 percent of our investments, although this is not a hard and fast rule. It's not that we don't like to work with other venture capital firms. We choose to act as a sole investor because it affords us a larger degree of flexibility when dealing with aspects such as price, cooperation and mutual understanding.

High risk, high return; that is the reality that every venture capital firm must face. The simpler something is, the more likely it is to succeed. We will therefore purposefully select businesses with simple ownership structures and business models in order to lower our risk. Indeed, we prefer to act as the sole investor in the first stage of starting businesses, but first stage businesses are usually relatively small in scale. We spend a year to a year-and-a-half training the company team, speeding up the process of its development. Then, in the second and third stage, we attempt to bring in other international venture capital firms and work together towards the eventual IPO of the company. In this way we can effectively spread the risk of investment. Take Quan Jing Images, for example. In the second stage we jointly invested in the business with Granite Global Ventures.

Are the factors considered for first and second stage investment different? What type of business will garner investment from WI Harper in its second stage?

Every venture capital firm takes different factors into consideration. For example, some firms are very much concerned with a business's finances. They won't invest unless a company has met their requirements in terms of financial status. Other firms look more at the management team, and if they feel that the team is deserving further investment, they will go ahead with the venture regardless of a few unsatisfactory marks on the company's financial statement. This is all dependent upon a firm's investment strategy. There is no quantifiable standard for the assessment of a business.

For WI Harper, our sixth fund has currently invested in seven companies (on the Chinese mainland ). Five of these companies are in the first stage and two have already completed the second stage. Of the latter two companies, we have decided to continue our investment in both.

What is WI Harper's investment style and orientation?

WI Harper has always played the role of a financial service provider. We serve entrepreneurs who are starting their own business and these businesses grow through the provision of funds, technology and resources with value and guidance. The mission of WI Harper is to build a trans-Pacific bridge of capital, human resources and market between Silicon Valley and Greater China.

WI Harper invests in businesses at all stages of growth, but especially looks for businesses in the initial stages. Our targets are large-scale investments with high growth potential. We are particularly experienced in the operation of businesses in the hi-tech sector.

(Xinhua Finance)

DISCLAIMER: The information contained herein is based on sources we believe to be reliable, but is provided for informational purposes only, and no representation is made that it is accurate or complete. This briefing should not be construed as legal, tax, investment, financial or other advice, and is not a recommendation, offer or solicitation to buy or sell any securities whatsoever.