Post by Sapphire Capital on Aug 16, 2008 22:54:22 GMT 4
Risk Mitigation Strategies of Foreign Venture Capitalists in China
Qianqian Du
University of British Columbia - Sauder School of Business
Ilan Vertinsky
University of British Columbia - Sauder School of Business
July 2, 2008
Abstract:
We developed a theoretical framework which articulates the relationship between global and local experiences of the venture capitalists investing in China and the risk mitigation strategies they employ. We predicted that venture capitalists with little experience are more likely to join syndicates. We also predicted that the relationship between late stage strategic focus and VCs' global and local experiences is positive. We tested our hypotheses using database covering all first round venture related investments made by foreign VCs in China until Oct 2006. Controlling for a variety of factors our data supported our predictions.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1154809_code544556.pdf?abstractid=1154809&mirid=3
Qianqian Du
University of British Columbia - Sauder School of Business
Ilan Vertinsky
University of British Columbia - Sauder School of Business
July 2, 2008
Abstract:
We developed a theoretical framework which articulates the relationship between global and local experiences of the venture capitalists investing in China and the risk mitigation strategies they employ. We predicted that venture capitalists with little experience are more likely to join syndicates. We also predicted that the relationship between late stage strategic focus and VCs' global and local experiences is positive. We tested our hypotheses using database covering all first round venture related investments made by foreign VCs in China until Oct 2006. Controlling for a variety of factors our data supported our predictions.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1154809_code544556.pdf?abstractid=1154809&mirid=3