Bullish China

Following last article about VC,  there is a rank about PE (Private Equity)

1. Bain Capital
2. Texas Pacific Group
3. Apax Partners
4. Blackstone Group
5. Carlyle US Venture
6. Silver Lake Partners
7. Fortress Investment Group
8. Apollo Investment Corp.
9. Advent International
10. Kohlberg Kravis Roberts & Co.
11. BC Partners
12. CVC Capital Partners
13. Candover Investments
14. Terra Firma Capital Partners
15. First Reserve Corp.
16. Providence Equity Partners
17. EQT Partners
18. American Capital
19. Welsh, Carson, Anderson & Stowe
20. Permira
21. CCMP Capital
22. Goldman Sachs Capital Partners
23. Cinven
24. 3i US
25. Warburg, Pincus & Co.
26. Hellman & Friedman
27. General Atlantic
28. GTCR Golder Rauner
29. Charterhouse Development Capital
30. PAI Partners

It is normal for VC and PE to lose money, they can say that is must-pay tutor fee. Here are few main reasons why venture capital fail in China.

First, the lack of an ideal entrepreneurial team. In mature market, such as in Silicon Valley, both investors and inventors believe the most important business sccess is an ideal: if an inventor would like to do a samll business, to do your things dillently enough; for a traget of becoming medium business, be smarter, even a bit than other, howerver, as to enterprises of big businesses, there must be a moral and ideals. Usually, Chinese ignore or have not realizen the last factor.

Second, enterrpises cannot insist on its own direction of development, or get lost on the road of their long run target. It alwasy hard to adhere to the original and eventually die.

Third, enterprises are unable to adjust the market development strategies according to the firece market competition.

Forth, IPO is not the final aim. Some VC and PE just closely watch some project of pre-IPO and forget their untimate target. Certainly, it is irreproachability.

Fifth, key persons in company should better be shareholders or compensated with corressponding agreements. A stable staff team is the base of success.

Sixth, the risk of big boss spread too many industries. Some China enterprises think they can spread risk and like to persue the hottest industries like GE (Jack Welch and the GE Way is the business Bible in China)

7, The expansion is a dream, as well as a way to slove many problems. Undoubtedly, the tight cash status will bring out big risk, especially at the current situation of financial crisis.

8. Chinese team management often is a group of technical designers or programmers, the same as USA innovation enterprises, however, westeron culture are more likely to accept other experts in marketing, financing position comparing to Chinese culture.