| the past 10 years, lower returns and the economic | | | | improvement in the first half of this year, raised a |
| downturn has brought financing to the VC pressure. | | | | total of 7.5 billion, but still much lower than in previous |
| The shrinkage of VC financing will be for the next | | | | years. |
| decade VC industry what kind of change? | | | | So, VC financing will shrink the VC industry, the next |
| In recent years, launched after the Internet bubble | | | | decade what kind of change? |
| burst in the first VC funds in existence at the end of | | | | First of all, VC funds to the small size of the |
| cycle one after another. As we all know, the Internet | | | | development. In the 90's, more than 200 million U.S. |
| in the 90's for the VC and IPO market has created | | | | dollars even if much of the VC fund. But over the |
| enormous prosperity, then the bubble burst in 2000. | | | | past decade, raising 500 million or even a single round |
| VC funds are generally the duration of ten years. | | | | of managing one billion U.S. dollars of VC is also not |
| 2009 was the first time that 90 out of the ten years | | | | unusual. However, the greater the management of |
| than the rate of return is the beginning of 2000 the | | | | capital, the more difficult with a higher overall return. |
| first post-Internet era, the year of settlement funds. | | | | Therefore, small amount of the Fund will be launched |
| The next few years, a large number of funds | | | | to make it easier for fund managers to produce |
| launched after the age of the Internet will also be | | | | great things. In addition, more and more in the past |
| settled one by one after another. As the 90's | | | | of successful entrepreneurs and fund managers will |
| Internet boom and the good performance of capital | | | | become an angel investor or angel of the |
| markets, VC investment in the 90 years of age has | | | | establishment of smaller investment funds, to carry |
| a nice rate of return transcripts. From 1991 to 2000, | | | | out direct investment. |
| VC investments are around 2,000 listed companies, | | | | Second, VC fund amount will be reduced. |
| and another close to 1,400 enterprises to be sold. | | | | Involvement in the economic environment over the |
| With the market boom reaches 80-90 years of | | | | past decade, many of the Fund's performance |
| record high average rate of return on investment, | | | | unsatisfactory. This is for them to continue to the |
| VC in the first decade of this century still raise more | | | | next round of fund raising to be difficult. According to |
| capital. | | | | Deloitte and the National Venture Capital Association, |
| However, VC has more capital at the same time, the | | | | a face of the global 500 VC joint survey shows that |
| market did not give more than 90 years of | | | | 92% of U.S. venture capitalists expect the next 5 |
| investment environment. Over the past decade, the | | | | years will reduce the number of U.S. VC. |
| Internet bubble burst effect caused by industry, IPO | | | | Third, the investment model and investment |
| market downturn, as well as the financial crisis in | | | | strategy, VC they will adjust. Early periods of new |
| recent years have given an enormous impact on VC. | | | | ideas will be even more concern. Since the IPO |
| According to the National Venture Capital Association | | | | market and M & A market in recent years, |
| data show that in the 2000-2009 decade, VC | | | | valuations are not very good, it may wish to look |
| investment is only 430 listed companies. This figure is | | | | beyond their hope in the future, rather than |
| only 90 percent little more than two years. After the | | | | immediate short-term exit. At the same time, less |
| subprime crisis situation is even worse. 2008, 2009, | | | | need for capital projects and more popular. Internet |
| and 2010 in the first half, but also were only 6, 12, | | | | and information technology makes the venture capital |
| and 26 VC investment in listed companies. | | | | needed to further reduce the threshold. Capital |
| In fact, most companies are VC investments over | | | | projects required less bad in the capital market more |
| the past decade, out of the way are to be sold. | | | | flexible environment. Require large capital projects |
| Data show that over the past ten years more than | | | | funds are more vulnerable to unsustainable situation. |
| 3,000 enterprises invested by VC M & A, is 90 | | | | Fourth, some have long-term potential of the industry |
| times the number of mergers and acquisitions. | | | | and may have a breakthrough technology innovation |
| However, with the IPO can bring out high multiple | | | | will continue to be favored, especially for those |
| returns that are different, the return of M & As | | | | large-class fund, even though these projects often |
| is often very limited. | | | | means that large investments. Such as life sciences, |
| Prosperity for the year 2000 brought a lot of VC | | | | clean technology, environmental protection and green |
| financing, it also needs to invest more in business. But | | | | products or services. Although the development of |
| is it worth the investment project and no significant | | | | new medicines, new medical equipment, or application |
| growth. More VC, more money, make good business | | | | of new energy such as wind, solar, or nuclear energy |
| investment increasingly fierce competition. Become | | | | use usually requires a longer period of time and a lot |
| increasingly difficult to find so much money that can | | | | of input, but may have a breakthrough and future |
| bring a large enough return on investment | | | | returns is also extremely significant. |
| opportunities. VC rate of return on the market in | | | | Fifth, the increasing number of VC have also begun |
| buying and selling ends of the market is becoming | | | | to look to emerging markets in search of higher |
| less and less compression. | | | | returns and more sources of funding. China is one of |
| As the 90's high rate of return to the VC the first | | | | most concern to the market. More and more |
| decade of the new century has brought a lot of new | | | | overseas VC has been, or will be, the establishment |
| capital, in turn, lower returns over the past 10 years, | | | | of the RMB funds or direct investment in Chinese |
| and the economic downturn will bring to the future | | | | enterprises. China's economy has been benefiting |
| of VC financing pressure. Difficulties in financing this | | | | from strong growth. New stock market listed |
| trend has already begun gradually. According to | | | | companies in China the number will reach 300 this |
| statistics, in 2007 the United States a total of 217 | | | | year, financing, expected to total 500 billion yuan. This |
| funds raised more than 40 billion U.S. dollars. 2008, | | | | makes China the world's largest IPO market. The |
| 203 funds raised to 28.7 billion U.S. dollars. In 2009, | | | | desire to play the "home run" of the VC were, China |
| only 125 funds raised 13.6 billion U.S. dollars. Slight | | | | would be their best stadium. |