{"id":19822,"date":"2012-04-23T22:10:46","date_gmt":"2012-04-23T14:10:46","guid":{"rendered":"http:\/\/www.chinahearsay.com\/?p=12700"},"modified":"2012-04-23T22:10:46","modified_gmt":"2012-04-23T14:10:46","slug":"china-startups-face-vc-funding-problems","status":"publish","type":"post","link":"https:\/\/www.chinalegalblog.com\/en\/2012\/04\/23\/china-startups-face-vc-funding-problems\/","title":{"rendered":"China Startups Face VC Funding Problems"},"content":{"rendered":"

I’m still on the road here in HK, so the blogging is going to stay sporadic for the remainder of the week. In the meantime, have a look at this Reuters article on VC funding<\/a> of China startups. Here’s a taste:<\/p>\n

\n

China’s hot\u00a0Internet sector is facing a problem it is unaccustomed to: a lack of money.<\/p>\n

The world’s largest Internet market, with nearly half a billion users, gave birth to some of the world’s most vibrant\u00a0Internet firms, such as Baidu Inc and Tencent Holdings.\u00a0Venture capitalists\u00a0bankrolled them, making knockout returns after the firms’ successful U.S. listings in the mid- to latter half of the previous decade.<\/p>\n

But a slew of\u00a0accounting scandals\u00a0and fears that the corporate structures used by China’s Internet firms could face greater scrutiny from Chinese authorities have spooked U.S. investors in the past year, dulling their appetite for initial public offerings.<\/p>\n<\/blockquote>\n

Only one point here. I wonder (and don’t know the answer) to what degree this funding squeeze is due to accounting scandals, and how much is about concerns over VIE corporate structures. If I had to guess, and it looks like I do, I’d go with accounting scandals. To date, nothing has happened with VIEs, and most of the discussion about the issue occurred some time ago. It might be a contributing factor, but it would surprise me if it was a controlling one.<\/p>\n

\n

\u00a9 Stan for China Hearsay<\/a>, 2012. |\nPermalink<\/a> |\nOne comment<\/a> |\nAdd to\ndel.icio.us<\/a>\n\nPost tags: Internet<\/a>, startups<\/a>, venture capital<\/a>\n<\/small><\/p>","protected":false},"excerpt":{"rendered":"

I'm still on the road here in HK, so the blogging is going to stay sporadic for the remainder of the week. In the meantime, have a look at this Reuters article on VC funding of China startups. Here's a taste: China's hot\u00a0Internet sector is facing a problem it is unaccustomed to: a lack of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,194,1623],"tags":[7758,3542,3278,7996],"class_list":["post-19822","post","type-post","status-publish","format-standard","hentry","category-internet","category-news-chinese-law","category-venture-capital","tag-internet","tag-short-takes","tag-startups","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/19822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/comments?post=19822"}],"version-history":[{"count":0,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/19822\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/media?parent=19822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/categories?post=19822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/tags?post=19822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}