Report on China Risk Investment Industry , 2011-2015

　　Risk investment is to invest capital in the early period of venture enterprises development, when it grows relatively matured, it transforms the capital invested from equity form to capital form through market withdrawal mechanism to recover the investment and get high risk profit.
　　Global venture capital markets, experiencing five years’ recovery, rallies to enter new round of rapid development period, and the accelerating trend already forms. In addition to the matured and hot investment regions, risk investment markets in the new surging hot regions which include China, India and Russia, etc develop rapidly and hotly.
　　In 2006, risk investments of America, Europe, Israel, China and India amounted to 35.2 billion dollars, although investment level of different regions were all improved, due to the high growth of China economy, China risk investment grew more rapidly than that in matured market, and growth amplitude of investment amount was up to 58%.
　　China risk investment started in 1980s, in spring tide of market-oriented economy, China risk investment business has achieved great progress.
　　In 2006, China venture capital and total investment amount both achieved new high, the growth rate got the new record in the history. By the end of 2006, China total risk investment amount was more than 58.385 billion yuan, higher by 32.31% than 44.129 billion yuan at the end of 2005; the newly raised risk investment scale was as high as 24.085 billion yuan, and 23.06% more than 19.571 billion yuan in 2005. In 2006, annual China risk investment amount made a new record in the history-14.364 billion yuan which increased 22.17% than that in 2005. The growth rate of venture capital and total investment amount both surpassed 20%.
　　In 2007, the scale of China venture capital presented blowout growth, national institutions engaging in risk investment were more than 400. By the end of 2007, total venture capital amount managed by China risk investment institutions had surpassed 120.585 billion yuan, double of that at the end of 2006. In the aspect of investment, total investment in 2007 was above 39.804 billion yuan, 2.5 times more than that in 2006; the numbers of investment projects were up to 741, 2 times more than that in 2006. Average capital amount managed by each risk investment institution was 849.2 million yuan.
　　In the fields of investment, the enterprises invested by VC in China were almost all network enterprises in 1990s, such as the familiar ones now: Sina, Sohu and Alibaba, etc. which were favored by the venture capital. Now the new round of VC investment tide favoring traditional projects as the hotspots for investment, such as education training, food and beverage chain, clean technology and automobile aftermarket, etc. is different from gathering to invest in Internet industry in the past time. Once the traditional industries form chain brand, it is easy to form whole effect. The industries like the food and beverage chain, hotel chain, etc. have very broad prospect in China with good growth and very stable return. It is inevitable to be favored by venture capital.
　　With the continuously stable and high-speed growth of China economy and gradual improvement of capital market, China capital market presents strengthening growth momentum in recent years and high returns of the investment, it makes China become the strategic and important place which attracts the attention of the whole world capital.
　　Although the overall scale of China industrial investment market has certain disparity with developed countries, the returns of the investment in China are the world level. Besides, risk investment should keep the same step with macro-economic trend. China urbanization process is estimated to make China urban population increase to 0.92 billion in 2025, and the proportions of national GDP held by urban GDP will also increase to 95%. Consumer goods market of urban residents, medical equipment, environment, energy, etc. will be the focuses of attention of risk investment in the future.
　　The next ten years are considered as the golden ten years in which China risk investment changes from weak to strong and develops rapidly, and we need envisage the developing opportunities that China risk investment industry faces with long-term view and global perspective. It is expected that China will become the venture capital big country only to the United States and Europe. From the view of macro-economic growth momentum, needs of national innovation strategy, development prospect of capital market, or from the development trend of venture capital industry itself, this expectation is entirely possible to be achieved.

Contents of Chinese vision>>

Chapter I Definition and related overview of risk investment
　　1.1 Concept of risk investment and developing elements
　　　　1.1.1 Definition and features of risk investment
　　　　1.1.2 Elements of risk investment
　　　　1.1.3 Risk analysis of risk investment
　　1.2 Introduction of risk investment fund
　　　　1.2.1 Function of risk investment fund and issuing method
　　　　1.2.2 Capital source of risk investment fund
　　　　1.2.3 Development model of China risk investment fund
　　　　1.2.4 Financing and investing efficiency analysis of China risk investment fund
Chapter II Analysis of risk investment industry development
　　2.1 Survey of international risk investment
　　　　2.1.1 Overview of world risk investment
　　　　2.1.2 U.S.
　　　　2.1.3 Britain
　　　　2.1.4 Israel
　　　　2.1.5 Other countries
　　2.2 Survey of China risk investment industry development
　　　　2.2.1 Review of risk investment development 2004-2006
　　　　2.2.2 China risk investment blowout-style development 2007
　　　　2.2.3 Status of China pioneering investment development 2008 Q2
　　　　2.2.4 Status quo of China risk investment industry development
　　　　2.2.5 Analysis of private risk investment development
　　2.3 Analysis of China risk investment field
　　　　2.3.1 Overall development survey of China risk investment field
　　　　2.3.2 Education & training and chain industry
　　　　2.3.3 Clean energy & technology and biomedicine
　　　　2.3.4 Internet and others
　　2.4 Survey of risk investment development in key regions
　　　　2.4.1 Western region
　　　　2.4.2 Central region
　　　　2.4.3 Guangdong
　　　　2.4.4 Beijing
　　　　2.4.5 Shanghai
　　　　2.4.6 Zhejiang
　　2.5 Risk investment competition situation and market performance analysis
　　　　2.5.1 China risk investment stepping into the "Spring & Autumn and Warring States" period
　　　　2.5.2 Risk investment market performance analysis
　　　　2.5.3 Risk investment market performance evaluation and development suggestion
　　2.6 Problems existing in risk investment and suggestions
　　　　2.6.1 Gap of risk investment development between China and developed countries
　　　　2.6.2 Current problems existing in China risk investment
　　　　2.6.3 Development strategy of domestic pioneering investment
　　　　2.6.4 Suggestions for China to develop risk investment
Chapter III Analysis of risk investment process
　　3.1 Financing analysis
　　　　3.1.1 Introduction of major source of financing
　　　　3.1.2 Financing channel analysis of risk investment
　　　　3.1.3 Problems existing in risk financing & investing and countermeasures
　　3.2 Analysis of operation
　　　　3.2.1 Operating model of foreign risk investment and revelation
　　　　3.2.2 Risk investment operation analysis of some investment subjects
　　　　3.2.3 Operation analysis of government risk investment
　　　　3.2.4 Financial operation analysis of risk investment
　　3.3 Analysis of exit mechanism
　　　　3.3.1 Exit mechanism analysis of domestic and foreign risk investment
　　　　3.3.2 Choice of risk investment exit approaches
　　　　3.3.3 Second board market
Chapter IV Key risk investment institutions
　　4.1 IDG Technology Venture Investment
　　　　4.1.1 Company introduction
　　　　4.1.2 Basic principles and main criteria for IDG to choose investment projects
　　　　4.1.3 IDG has been approved by the Ministry of Commerce to set up the RMB fund
　　　　4.1.4 IDGVC has completed raising new funds 600 million dollars
　　4.2 Susquehanna International Group (SIG) Asia Investments
　　　　4.2.1 Company introduction
　　　　4.2.2 Successful cases the company invested in
　　　　4.2.3 SAI paying most attention to the investment in consumption field
　　4.3 Sequoia Capital China
　　　　4.3.1 Company introduction
　　　　4.3.2 Sequoia Capital China Investment survey
　　　　4.3.3 Sequoia Capital China investing in the web page games
　　4.4 SAIF Partners
　　　　4.4.1 Company introduction
　　　　4.4.2 SAIF transmuting into local risk investment company
　　　　4.4.3 SAIF investing 40 million yuan in 58 city nets again 2008
　　4.5 Shenzhen Capital Group Co., Ltd.
　　　　4.5.1 Company introduction
　　　　4.5.2 Investment survey 1999-July, 2008
　　　　4.5.3 Classic cases the company invested in
　　　　4.5.4 Strategies of company investment and exit
　　4.6 Legend Capital Co., Ltd.
　　　　4.6.1 Company introduction
　　　　4.6.2 Legend Capital investment focus
　　　　4.6.3 Legend Capital beginning to pay attention to enterprises in middle-later stage
　　　　4.6.4 Legend Capital introducing domestic capital for the first time 2008
　　4.7 Introduction of other risk investment companies
　　　　4.7.1 Shanghai New Margin Ventures Co. Ltd.
　　　　4.7.2 Softbank China Venture Capital
　　　　4.7.3 TDF Capital
Chapter V Policy environment and prospect outlook of risk investment industry
　　5.1 Policy environment of risk investment industry
　　　　5.1.1 The impact of the new Company Law on pioneering investment and the countermeasures
　　　　5.1.2 The impact of foreign capital merger and acquisition regulations on risk investment
　　　　5.1.3 Enterprise tax preference policies promoting the development of pioneering investment
　　　　5.1.4 Main legislation direction of China risk investment
　　5.2 Prospect and development trend of risk investment
　　　　5.2.1 Stable developing and bright prospect of China risk investment
　　　　5.2.2 China will become the hot place of risk investment in the next ten years
　　　　5.2.3 The ten trends of China risk investment in the future

Chart Diagram of IPO and merger & acquisition transactions 2002- 2008 Q1
Chart Data of merger & acquisition transactions and IPO from 2001 to the first half year of 2008
Chart Merger and acquisition transactions disclosed in the first half year of 2008
Chart U.S. risk investment development scale and source composition
Chart Organization forms comparison of U.S. private venture capital companies
Chart Industrial types of U.S. venture capital investment
Chart Geographical distribution of U.S. risk investment
Chart China risk investment development status in different regions 2004
Chart New raised venture capital distribution 2005
Chart Risk investment exit scale 2005
Chart Capital scale distribution status of risk investment institutions
Chart Regional distribution of risk investment scale 2003-2004 (money amount)
Chart Industrial distribution of project investment ( projects number and money amount)
Chart Staged distribution of risk investment projects (projects number)
Chart Exit project distribution 2004-2005 (projects number)
Charts Quarter investment cases number of China pioneering investment market 2006 Q2-2008 Q2
Chart Quarter investment amount of China pioneering market 2006 Q2-2008 Q2
Chart Average quarter investment amount per deal of China pioneering investment market 2006 Q2-2008 Q2
Chart Comparison of investment scale per deal of China pioneering investment market 2008 Q2
Chart Investment scale of TMT industry and non-TMT industry in China pioneering investment market 2008 Q2
Chart Average investment amount per deal of TMT industry and non-TMT industry in China pioneering investment market 2007 Q1- 2008 Q2
Chart Investment proportions of TMT and non-TMT in China pioneering investment market 2007 Q2-2008 Q2
Chart Industry investment scale of China pioneering investment market 2008 Q2
Chart Hot industry investment scale of China pioneering investment market 2008 Q2
Chart Comparison of hot industry investment scale in China pioneering investment market 2008 Q2
Chart Proportions of industry investment cases in China pioneering investment market 2008 Q2
Chart Proportions of industry investment amount in China pioneering investment market 2008 Q2
Chart Comparison of the quantity of different industries investment cases in China pioneering investment market 2006 Q2-2008 Q2
Chart Comparison of different industries investment amount in China pioneering investment market 2006 Q2-2008 Q2
Chart Proportions of different industries investment amount in China pioneering investment market 2006 Q2-2008 Q2
Chart Proportions of internet sub-industry investment cases in China pioneering investment 2008 Q2
Chart Proportions of internet sub-industry investment amount in China pioneering investment 2008 Q2
Chart Comparison of the quantity of enterprises investment cases in different developing stages of China pioneering investment market 2006 Q2-2008 Q2
Chart Financing amount of enterprises in different developing stages of China pioneering investment market 2007 Q1-2008 Q2
Chart Each round investment scale of China pioneering investment market 2008 Q2
Chart Regional investment scale of China pioneering investment market 2008 Q2
Chart Top five of China pioneering investment market in the quantities of regional investment cases 2008 Q2
Chart Top five of China pioneering investment market in the regional investment amount 2008 Q2
Chart Investment scale of Chinese and foreign capital in China pioneering investment market 2008 Q2
Chart Proportions of Chinese and foreign capital investment cases in China pioneering investment market 2008 Q2
Chart Proportions of Chinese and foreign capital investment amount in China pioneering investment market 2008 Q2
Chart Comparison of Chinese and foreign capital investment proportions in China pioneering investment market 2008 Q2
Charts Price level of U.S. under the conditions of different investment exit channels (rate of return on investment)
Chart Comparison between Japanese and American risk enterprises
Chart Technology risk trend in the research and development process of new biological medicine
Chart Expected return rate and multiple of return of venture capital invested in biological medicine enterprises of different stages
Chart IPO quantity and financing amount of enterprises American venture capital invested in
Chart Biological medicine risk investment exit effect vs IPO exit effect in the biggest merger and acquisition cases every quarter in the whole America 2005
Chart Wireless application investment scale of China and forecast 2004-2008
Chart Investment cycle of wireless application industry
Chart Annual distribution of investment projects quantities of Shenzhen Capital Group 1999-July, 2008
Chart Annual distribution of projects investment amount of Shenzhen Capital Group 1999-July, 2008
Chart Industrial distribution of investment projects quantities of Shenzhen Capital Group
Chart Industrial distribution of projects investment amount of Shenzhen Capital Group
Chart Geographical distribution of investment projects quantities of Shenzhen Capital Group
Chart Geographical distribution of projects investment amount of Shenzhen Capital Group
Chart Staged distribution of investment projects quantities of Shenzhen Capital Group
Chart Staged distribution of projects investment amount of Shenzhen Capital Group
Chart Domestic and foreign currency distribution of investment projects quantities of Shenzhen Capital Group
Chart Domestic and foreign currency distribution of projects investment amount of Shenzhen Capital Group
Chart Investment ways of foreign venture capital investing in China enterprises
Chart The difference between cash purchasing and cross-border exchange