Venture capital firms provide funding for startup companies and manage large funds from institutions and wealthy investors. They look for companies in high-growth industries like technology and assess them based on their business model, market potential, and management team. While most VC investments fail to return a profit, successful ones can provide high returns through events like a company's IPO or acquisition. Some well-known Chinese VC firms include Softbank, which earned a 1000% return on its investment in Alibaba, demonstrating the potential rewards of venture capital.

1. V enture C apital The entrepreneur behind the entrepreneur Ideal TMC, Big Money, Big Talk. By Robin Han

2. What is the common point of the following companies? VC

3. In Oct, 2000, Softbank invested USD20m to Alibaba in just 6 mins In April 2004, Softbank invested another USD60m to Alibaba In 2007 Alibaba listed in H.K. Stock Exchange, Softbank’s ROI reached 1000%

4. What is VC? Venture Capital A fund management company leaded by a group of professionals, most of them have successful entrepreneurial experience, or from investment banks They manage a huge sum of money from millions of USD to multi-billion USD VC normally don’t have money, they just manage money, the money belong to many millionaires, bankers, oil tycoons, or government social security fund, pension fund, etc. They charge management fee for the fund

5. Why this world needs VC? Because now is the era of entrepreneurship, everybody wanna be boss of themselves The fact however is we are poor, most of us doesn’t born with a silver spoon, so we need money to start up a business or expand business The nature of capitalists is greed, what else they can make more money beside stock market and real-estate? Company! After you bring a company to Nasdaq, or you have been sick and tired to be a CEO or chairman, what else can you do? To become a VC!

6. Different kinds of VC Star-up stage: angel investment Early stage: Seed fund Grow-up stage: VC Pre-IPO stage: PE

7. Angel Investment For start-up company Normally RMB 0.1m-0.5m The investors are normally your friends, colleagues, relatives, classmates, etc They are just like an angel give the life of your business The risk is the highest Normally ask for 30% shareholding $

8. Seed Fund For early-stage company Normally RMB 0.5m-5m The investors are normally those VC who focus on early-stage companies They provide water, earth, air, sunshine and other key element for your business growing up The risk is very high Normally ask for 20-30% shareholding

9. Venture Capital For developing-stage company Normally RMB 5m-30m The investors are normally professional VCs who focus on investment of bottle-neck-stage of the company They provide a ladder to level up your business from one level to another level The risk is high Normally ask for 20-30% shareholding

10. Private Equity (PE) For pre-IPO company Normally RMB 30m-100m The investors are normally fund management companies, their money are from organizational investors They provide huge money to make sure your company can list in stock market Low risk Normally 10-20% shareholding

11. What is the criteria VC select companies? Basically follow the principle of BTM B – Business & Market T – Team M – Model (Business Model) B: high growth rate, high potential market such as IT, Internet, biotechnology, clean tech, etc. T: Invest a company is actually invest people, the management team! Are they passionate, committed, responsible, dedicated and capable? M: How you make money?

12. What role a VC can play An Angel A mother A wife A teacher A doctor A headhunter A couch

13. Does VC always make money? 6-7 investments out of 10 are failed 2-3 investments out of 10 breakeven 1 out of 10 maybe successful, but this 1 will normally is a big shot!

14. How VC get return of their investment? IPO of invested company Invested company is merged and acquired Other VC/PE come in and buy your share

15. Some famous VCs in China

16. Thank you!