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China's VC takes on six features

(chinadaily.com.cn)
Updated: 2006-01-14 15:38

On January 13, China Venture Capital Research Institute Limited announced the results of its research on China's venture capital (VC) industry at the 2006 China Venture Capital Forum.

It said that China's VC development takes on six features: first, the overall scale of China's VC continues to grow steadily, while its industrial differentiation will become more and more evident; second, the gap between local and foreign VC organizations further widens; third, the Internet and software industry still catches on; fourth, it remains difficult for start-up projects to raise fund; fifth, Shenzhen no longer has the competitive edge in luring VC, and most capitalists shift to western China; sixth, exit channels are not smooth enough.

In addition, analyses on investment industries show that software, Internet, biological technology, communications and integrated circuit (IC) industries jointly dominated the investments made in 2005, among which IC took the biggest share with a proportion of 8.84 percent, followed by communications/telecommunications with a 7.64 percent share.