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Showing posts from January, 2011

Pros and Cons of Venture Capital

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woody1778aWhat are some of the pros and cons of venture capital investment? According to Shesh Mani, Portfolio Manager of Blackstone Group, one advantage is that VC is not a loan that has to be paid back. This gives you leverage to expand your business opportunities using other people's money. Another advantage of venture capital investment is that you can "expand your business and obtain market before someone beats you to it." Deepak Tripathi, Portfolio Manager of Sun Group cites a disadvantage: "You are no longer the sole owner of your company and may lose control." In addition, a VC may direct your company toward an IPO of publicly traded shares at a pace that may not be best for the long run.

U.S. Venture Capital Funding Continues to Decline, Suggest 2010 Figures

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2010 was another tough year for venture capital, according to Dow Jones. The industry venture capital fundraising shrank by 14% to $11.6 billion as compared to $13.5 billion in 2009. This is a huge fall for venture capital when placed against the VC funding of $40 billion that was raised in 2007. According to Dow Jones, the majority of venture capital funds were accounted for by Multi-stage funds, where 38 funds collected $5.4 billion. Data suggests that LPs are becoming increasingly selective while investing. This conflicts with the believed acceleration of the NY tech venture capital scene, which is on the verge of a bubble. However, New York accounts for only a small portion of the total U.S. venture capital funding and in not yet big enough to lift up the broader venture capital market.

Personal Outsourcing

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© Digger/ATL If you use social media monitoring to bring in income from your websites, you may discover that you have more work than you can handle. You might find that you don't have enough time in the day to finish all of the work you have so that you can make money. This is where outsourcing comes in. Many big companies are outsourcing their work to some countries that charge less for this type of work. While there is a big debate going on about outsourcing and taking away jobs from other people, you can outsource your own work to others that may do the occasional job for you. For example, let's say that you are a writer and have twenty articles due the next day. You can put out a call for one or more writers to take some of this work off of your hands. You can opt to pay them the exact same amount you are getting paid per article, or you can offer the outsourced writer a little less so that you can still make money in the deal, since you are the one who originally brought t...

Considering Setting Up As A Venture Capitalist?

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© markhillary If you are interested in becoming a Venture Capitalist in China, now is the time to get started. China's economy is through the roof, and this is the perfect time to take advantage of the rapid growth. There are some things to consider before you get started, however. The first is to do with your own position. Do you plan to move to China, and start the business alone? Or would you prefer to stay put, and send a 'board' of people on your behalf? You also need to make your own financial position clear. Starting a venture capitalist company takes concentration, so it's advisable to make your own finances as simple as possible, to ensure your commitments are taken care of without them taking up too much time. Spend some time looking through bank statements and analyzing your income and outgoings, and look at ways to simplify your current system. One popular way is through debt consolidation. This involves merging your debts together into one outgoing, which i...

Creative Infrastructure

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© Skype Nomad Each organized enterprise is associated with people first. Every person in that group is a dynamic enterprise in and of him/herself. Enfolded into the group dynamic, the single person becomes part of a larger option: ideas spawn from the interaction between each member and the creative infrastructure develops and grows. You will find this process used in almost every walk of life. It lives in businesses that sell car insurance, batteries, stereos and grapefruit. It exists in every form of human organization that envisions itself as moving, growing, creating and succeeding. The three largest infrastructures are governments, religions and businesses. Often these are so interrelated that it is impossible to separate one from the other. They become an even larger "extra-structure", acting as a complete unit. Once human designs become this large, the organized enterprise becomes a self-supporting life form, creating ways to remain safe and the plan unmoved. It is her...

Using a Prepaid Credit Card in Chinese Business

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© Ivan Walsh The enormous growth of the Chinese economy over the past few years has been big news all over the world. If you aren't doing in business in China or incorporating it into the business that you do elsewhere, you may missing out on what could make your business better. If you are importing items from China for sale elsewhere or exporting items for sale in China, not having a bank account in China doesn't have to be a problem. There are a number of other ways to do business that won't cramp your business possibilities. If you have never done business in China before it can be intimidating to get started. You need to have adequate funds to handle the items that you need to buy, and you need to have a way of supplying those funds that are accepted as widely as possible. If you have an obscure bank account that is hard to access or a debit card that is tied to your personal finances, you need a better way of handing your business charges that won't hamper busines...

China's Booming Automobile Sector

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© jiazi After sectors such as electronics, clothes and metal sector, the Chinese automobile sector is coming forward as the most attractive investment opportunity. Past five annual forecasts have been growing like clock work and even in the periods of recession, the growth never slowed down. It began its upward trend from the year 2000 and since then it has surpassed United States as the biggest automobile sector in the world. Just the immense size of the Chinese population is enough to push any automobile manufacturer to success with even mediocre vehicles. Along with this it also has a huge export base. From here vehicles are exported to almost all the parts of the world. It is attracting automobile manufacturers from around the world to set manufacturing units here and sell to the domestic as well as exporting to foreign markets. It currently manufactures in excess of 10 million vehicles a month. It is currently self sufficient with no need to export any component and parts from out...

How Healthy is the Chinese Economy?

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© cogdogblog The economic recovery is slowly moving around the world. Many people have chosen alternative forms of income such as payday loans to help them as times continue to be difficult. Many nations that are looking for other sources of income have turned to China. This has led to some concerns from high level Chinese officials who believe that certain economic anomalies might shake the Chinese economy to its core. China's huge economic growth in the last few decades has opened it up to huge financial loopholes that could be problematic down the line. China has made over one trillion dollars in loans to various industries, which could create a problem of overcapacity. Many people within China and the economic markets of the world are concerned that any new economic bubbles that emerge during this time might be unsustainable. Essentially, the Chinese economy is spread very thin. China has loaned out buckets of money to many nations around the world, both western and developing ...

China Venture Capital Association Renamed

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Individuals looking to invest their money through venture capitals in China may be fond of a company called China Venture Capital Association. China Venture Capital Association has official changed names for individuals looking for them. Their new name is China Venture Capital and Private Equity Association. The recent change of name was to refocus the values of the company and explicitly describe the purpose of the company to more clients who are from a range of backgrounds and experiences. The company who has been working with individuals and other companies for 8 years, has an extensive knowledge in the area of venture capitals. You can read more about the venture capital company as well as more information about their services here.

Lawson's CEO Leads Exodus of `Best People' to China as Japan's Growth Ebbs

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Source : Bloomberg By Shunichi Ozasa and Naoko Fujimura Lawson Inc. Chief Executive Officer Takeshi Niinami aims to open almost 10,000 stores in China by 2020, selling drinks, food and magazines. To pull it off, the Tokyo-based executive is packing his bags for Shanghai. As Japan’s second-largest convenience-store operator plans to boost outlets in China more than 30-fold, Niinami, 51, will spend a month in the nation from May and another within less than a year, he said at a media briefing in Tokyo on Dec. 20. Lawson is also training Chinese recruits in Japan to work as store managers in their home country, where the company lags behind rivals Seven & I Holdings Co. and FamilyMart Co. “To get a feel for daily life in China and to take risks, I’ve got to live there a couple of months,” Niinami said. “Staying all the time in Japan, I tend to focus only on downside risks.” Niinami’s plans underscore how Japanese companies are counting on China, set to surpass Japan as the world’s sec...

Carlsberg becomes largest shareholder of Chongqing Brewery

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Source : China Knowledge Dec. 28 2010 (China Knowledge) - Carlsberg Group, the world's fourth-largest brewer, yesterday said it has completed the acquisition of a 12.25% stake in China's Chongqing Brewery Co, becoming the largest shareholder of the Chinese beer maker, sources reported. According to the report, the stake acquisition lifted Carlsberg's shareholdings in Chongqing Brewery to 29.71%. Early this month, Chongqing Brewery said in a statement filed with the Shanghai Stock Exchange that China's Ministry of Commerce had approved the deal. In Jun. 10, 2010, the Danish brewery said it would buy an additional 12.25% stake in the Chinese firm for about RMB 2.39 billion. The average price for the transaction was RMB 40.22 per share. Chongqing Brewery operates 15 nationwide breweries and ranks as a top-six domestic producer based on yearly output.

Bright Food's unit buys 40% stake in Sichuan Quanxing

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China Knowledge Dec. 31, 2010 (China Knowledge) - Shanghai Sugar Tobacco Wine Co Ltd, a wholly-owned subsidiary of Bright Food (Group) Co, has bought a 40% stake in Sichuan Quanxing Distillery Co Ltd from Sichuan Swellfun Co Ltd for RMB 47.15 million, sources reported. Bright Food currently has a liquor unit Shanghai Jinfeng Wine Co Ltd, which is principally engaged in the manufacture of yellow wine and sugar. After the deal, the target firm became Bright Food's first white spirit unit. The deal is in line with Bright Food's efforts to tap the white spirit and red wine market, and it will continue to diversify its products, said Ge Junjie, vice president of Bright Food and chairman of Shanghai Sugar Tobacco Wine. Sichuan Swellfun said in a statement that the share sale is expected to strengthen the company's core business of high-class white spirit, improve its financial structure, and boost its capabilities in sustained operation and steady development. Sichuan Quanxing Di...

$7.5b deals signed with Spain

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Vice-Premier Li Keqiang meets Spanish Prime Minister Jose Luis Rodriguez Zapatero during a signing ceremony at Madrid's Moncloa Palace on Wednesday. [Photo / Reuters] Li pledges to help EU tackle its debt problems as he starts European tour MADRID / BEIJING - China and Spain signed $7.5 billion worth of agreements on Wednesday, a welcome boost for Spain's recession-hit economy. Visiting Vice-Premier Li Keqiang also vowed to help Europe beat its debt crisis, as he started his three-nation European tour. Li told a breakfast meeting of Spanish and Chinese business leaders in Madrid that the signed agreements and contracts cover 16 programs. The deals reportedly involve the banking, energy, transport and telecommunications sectors. According to the Spanish daily El Mundo, they include Spanish flight simulator manufacturer Indra, and the Spanish branch of Vodafone. It was not clear whether the deals included the purchase of Spanish bonds. Li said prior to the trip China will buy mor...

Top 10 IPOs

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Editor's note: Chinese mainland companies dominate the global initial public offering (IPO) market in terms of the funds raised and the number of deals in 2010. While the Hong Kong market remains the more attractive choice for companies planning IPO, and American bourses win the favor of information technology companies, the domestic capital markets are also becoming more attractive. Here we list global IPOs conducted by ten mainland companies in 2010, covering industries like banking, e-commerce, green energy and advanced technology. Most of these companies are the 'lead horse'in their fields. 1.ABC raises $22b in HK and Shanghai dual listing 2.China Everbright Bank's IPO shines 3.China's Dangdang raises $272m in US IPO 4.Youku raises $203m in US IPO 5.Datang Renewable raises $643m in HK IPO 6.Goldwind restarts IPO in Hong Kong 7.China's Bona film group issues IPO on NASDAQ 8.ChinaCache posts the biggest 1st-day rally in US 9.Hepalink creates Chinese stocks...