We are looking for investors for startups in China. This article will tell you about our internet company located in Shanghai. We also discuss the investor atmosphere in China. Before we get into how Chinese tech companies operate, we want to tell you about ourselves.
We are an early-stage Chinese company that started in Canada. After doing very well in the Chinese community in Canada, we decided to focus our efforts on China. We built connections with the Chinese government and expanded to China. Instead of writing about what we do, you can see it here: ClearWay Law China
Angel investors for startups In China
If you want to connect, reach out to our CEO directly on Linkedin.
The investment market in China is new and complicated. This is why we are writing articles targeting investors in places like England, Australia, and the United States. A lot of people in western countries are interested in getting involved with the emerging Chinese market.
We are looking for capital, business partners, people to help us find investors, and lawyers in China. Building an online internet company is a lot of work and money. We need to put together the right team.
Startup business plan for investors
These days there are lots of investment funds in China. However, most of them invest in later-stage companies. We have spoken to a few that can speak English, and they liked our business model. They only invest in the amount of $10 million-plus, and we are not ready for that type of investment. Therefore, we are reaching out to wealthy individuals who believe that an investment in Chinese internet companies is a good one.
We set up as a Chinese company for regulatory reasons. There is very little legal protection offered to foreign companies doing business in China. Therefore, we set up as a Chinese company. We have lawyers, accountants, and business advisors in China that help us.
The goal of many Chinese companies is to be bought out by one of the large tech companies in China. Companies like JD.com, Baidu, Alibaba, and Tencent seem to buy any company that shows promise in the Chinese market.
Private investors for Chinese startup small business
These big four tech companies can easily make investments and can afford to take a loss if the companies do not work out. Only around one in ten start-ups make it big. However, that does not mean that all the rest fail. Many of the others will either fail or sell out before they get big.
Are you looking for an investment for a quick return or a long-term big play? You need to know what you want when it comes to Chinese internet and tech company investments.
Investors for start-ups in China cannot afford to take big losses the way that the big four can. Someone that invests $100,000 in a company wants to see it earn returns over five to ten years.
Investors for startups in China
There are a number of Chinese investment funds. Even Sequoia Capital is active in making large investments in Chinese companies.
As you might have seen in the Netflix documentary, the China Hustle, a lot of people are willing to throw insane amounts of money at publicly listed Chinese companies. Several investors are not completing tighter due diligence on companies. As the documentary, the China Hustle showed, there are a lot of dishonest people in China take advantage of some.
For this reason, investors in startups in China need to have a strong involvement with the company. The investment in our company requires shareholders to be involved with the company. We do not want completely hands-off investors. After the 2008 global market crash, a lot of investors moved their focus away from real estate and financial companies. They were no longer seen as “sure things.” Even low-risk investments like bonds became suspect.
Is China The Right Place for Startup Funding?
This lead to many investors and investment funds becoming open to investment opportunities overseas. The most obvious overseas investment was China, with the second-largest economy in the world. It seemed that most people thought that for the next few decades, the only market that might go up was China.
A lot of people that go to China (or Asia) for the first time get really excited. They see how fast things go, and how many people there are. You get a bit of that “New York” feeling everywhere you go. You just feel that you are in the middle of all the action.
Author: Alistair Vigier is the CEO of ClearWay Law