Venture capital is the founding funds for SMEs with great potential. The five stages of venture capital-seed stage, startup stage, growth stage, expansion stage and mature stage-are all imbued with high risk. According to rough estimates, for every 10 projects involving venture capitalists in Western countries, three will succeed and seven will fail. Because of this, in the field of venture capital, the principle of "do not put all your eggs in one basket" is often applied.
The purpose of venture capital is not to achieve majority control. Regardless of success or failure, exit is the only choice for venture capital. Exit strategies include IPO, acquisition and liquidation. Currently the main ways for a venture capital firm to exit via an IPO are as follows: listing on an overseas market as an offshore company; issuing H shares as a domestic company for listing overseas; listing on an overseas market indirectly through a shell company; listing on the domestic main board as a domestic company; listing on the domestic market indirectly through an A-share listed shell company.
DISCLAIMER: The information contained herein is based on sources we believe to be reliable, is provided for informational purposes only, and no representation is made that 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.