Venture capital in China: ground-level challenges for high technology investing

Venture capital has been widely studied in the U.S. and Europe, but only recently has it received greater attention in China. This, despite the fact that China has one of the world's fastest growing economies and is home to approximately one-quarter of the world's population. As China's private sector continues to grow, venture capital funds have directed increasing attention to small- and medium-sized technology-based firms. The challenges encountered by venture capitalists in China differ strikingly from those in more mature markets. This article details some of the issues to be dealt with in financing technology ventures in China and offers recommendations for how venture capitalists can address those challenges.