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Applying for Venture Investment
Chinese Enterprises Applying for Venture Investment
Introduction to foreign venture investments for the developing projects of Chinese enterprises (venture investments do not need assurance, or capital mortgages, neither does it require repayment of capital or interest)
1. Introduction to the Advantages
Some Chinese small or medium size enterprises have many employees with good talents as well as good projects. However, since the shortage of capital fund, they have difficulty in development their potential. Applying for support from banks is conditioned, and this problem has always been a “bottle-neck” for the development of small and medium size enterprises, so is it for the banks themselves. This problem has been resolved in European and U.S capital market. The market economy there is more complete than it is in China, and they’ve summarized-up many methods to resolve risks. For example, by gaining profits from projects or purchasing venture investment insurance. Venture investors are only establishing a joint-venture with Chinese enterprises in a particular type of stocks. For the Chinese partner, it is unnecessary to offer capital mortgage and assurance. In brief, the Chinese partner takes no risks; while the foreign partner insures their benefit through the rate of the investment returns and purchasing venture investment insurance. The U.S Global Bank Unite Investment Group has several hundreds of venture investors coming from all walks of life. They are now submitting the Beijing agency of the U.S Global Bank Unite Investment Group to search for cooperate partners in China. Chinese entrepreneurs are most welcomed to come and discuss our financial service.
Application and Process
1. Investment Qualifications
A. Private enterprises are most welcomed. No more than 5 shareholders and the chairman of the board should hold shares, as well.
B. We are not concerned about which trade the enterprise is involved in. What we care about is the return rate from our investment. Usually, we require for a rate of return no less than 20% after tax.
C. The term of cooperation is commonly 7 years. Foreign investors will retreat when the period of cooperation expires.
D. The Chinese enterprise should have a management team with professional experience, because we do not get involved with the operation of the business.
2. Documents to be provided
A. Corporation License, tax registration certificate, Institution Code and legal representative license of the applicant corporation.
B. Corporation constitution, report on the verification of capital and accounts auditing report for the past three years.
C. Government documents for the establishment and approval toward the project, a feasibility report and other relevant identified documents.
D. “Analysis on Investment Value” and “Business Plan” (English and electronic edition) conforming to the requirements for financing in international capital market.
3. Operation Procedures
A. Provide a power of attorney when applying for venture investment.
B. Provide an English summary of the corporation and the project (sample required).
C. You will be informed of the result of the pre-judicator within one week of submission.
D. If the pre-judication is approved, then, you need to provide all the documents and sign a letter of intent.
E. When the letter of intent is signed, we will arrange an interview in China for venture investors.
F. If the interview meets with satisfaction, then, the cooperation between the two sides will operate according to what they have promised, until the success of financing. |
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