To provoke further response, here are some of the questions that we’ve come up with after watching/reading them:
1. Unlike western companies, Chinese companies are often family-owned or controlled, and tend to value their privacy more. Sourcing funds from a VC requires a company to disclose information which it regards to be sensitive such as financial, operational, etc. Moreover, a VC firm has to right to appoint a representative to sit in the company’s board meetings and take on a non-executive role. Under such circumstances, wouldn’t it be more preferable for Chinese companies to follow a bootstrapping strategy instead? What can VCs do to make themselves appear more attractive to Chinese companies?
2. Other than amount of funding and capital needed, we feel that choosing the right type of funding also has to depend on the nature of a company’s business. For instance, in comparing B2B vs. B2C tech companies, we feel that it is better for B2C companies to choose VC funding as it is able to provide large amounts of capital over a short period of time, which is often critical for rapid or viral growth. Furthermore, VC backing also increases confidence in the technology thus consumers would be more willing to try it. In contrast, B2B companies typically face slower growth, have less clients but more focus on them. What do you think?
3. Based on your own startup experience, did you face an occasion where you had to choose between different types of funding? Which type of funding did you choose and why?
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