The Deal
Sunday, November 8, 
8:14 pm

Immeasurable Confidence

  Share     E-Mail    Discussion (1)     Print Story
800px-Flag_of_the_People's_Republic_of_China.svg.pngThe Entrepreneurship Program at the University of San Francisco has been tracking the much-hyped but toughtoquantify Chinese venture capital market with a China Venture Capitalist Confidence Index since the second quarter of 2005, and has measured jitters in the global economy driving the index down. Confidence in the second quarter registered 3.65 on the organization's 5-point scale, down from 3.86 in the prior quarter, based on expectations over the next 18 months.

Mark Cannice, a USF professor and creator of the index, said concerns over valuation and regulatory uncertainty are the principal concerns of those whose faith in Chinese venture opportunities is waning, but most participants in the study still have overall positive views on opportunities, and he notes that any dropoff in confidence has not been matched by slowing deal flow.

Cannice notes that venture funds from outside China accounted for about 75% of investment in the quarter, and nearly 90% of funds raised, and he said the high level of foreign capital funding suggests that the Chinese venture market is making strides in conforming to international investment standards. - Clifford Carlsen


Continue reading below

Also on Dealscape





Comments


Post a comment




The Deal Pipeline

Deal Video


Inside The Deal: Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Dealing with frozen bank lending

If your bank is not willing to lend, what can you do as your company continues to seek growth?


Judgment Call

The coming age of the renminbi

The Chinese currency will play an increasingly important role in international commerce and finance.


Industry Insight

Banking on PE investments

Howls of protest greeted the FDIC policy statement, but the financial services industry should get over it.



©Copyright 2008, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.