VC Market in Asia

Hong Kong

Hong Kong via efinancialnews.com

Efraim Landa is the founder of Effi Enterprises which is a venture capital firm. Effi enterprises helps emerging businesses find valuation and provides experienced guidance along the way. Like most venture capital firms, they are looking for strong entrepreneurship which they can support and help add value to until the company can go public with its offering. Effi Enterprises has a good deal of success especially when comparing it to other venture capital firms. One reason for their success is Efraim Landa is an entrepreneur himself and can offer skillful guidance to others who struggle with the same startup issues he has in the past. Asia is one area that has been opening up to VC funding over the last few years and there are more VC firms in the region than ever before.

History of VC in Asia

Asian entrepreneurs are eager to find venture capital firms from the US or Western Europe as these investors are typically eager to get in on the booming Asian economy but there are still some hesitancy on both sides of the equation. Venture investing in Asia has grown past the infant stage but because there is not much history of VC investing in Asia it can be difficult to proceed. Entrepreneurs in Asia are unaccustomed to the types of practices US VC firms expect and Western culture is not patient enough to want to spend the time educating them or to develop lasting relationships with them. These are two areas which are very important in the Asian culture.

Present Economic Climate for Asian VC

Asia has become a region that many consider hold a key to being able to maintain a sustainable global economy. This makes it a prime candidate for innovation and this seems to be the time that promoting venture capital firms can help in the development of Asian businesses. VC firms that have a global perspective will most likely find that they can provide the assistance that emerging companies and entrepreneurs are in need of including supplying funding and mentoring in management issues. One cultural situation that occurs is the Asians view the help from a VC firm as interference while the VC firm simply views it as helping add value to a company and offering many years of experience. The Asian community has difficulty seeing the situation as a partnership.

China in particular has a booming domestic market but the seed investor network and angel investors are still emerging. VC firms have provided large funds and invested in areas other than technology such as industrial products and consumer goods. For the most part, the region continues to see entrepreneurship and innovation as activities that stimulate a prosperous cycle of growth. Just a few years ago it was not possible to form a company, raise necessary capital, grow the business and then go public however; this has drastically changed into a probable reality in Asia.

The Future of Venture Capital Firms in Asia

The future of Asian VC does look good with the economy of the region gaining strength however; VC investments will need to be guided by more structure and clarity in the regulations and laws of the area. While China and India have removed some major problems these changes are still evolving. It is yet to be seen how innovation and entrepreneurship will be stimulated in the ever changing economic environment. The VC industry in Asia, specifically China and India will focus on regional and local needs. VC firms will have to look at the global picture and US investors are very interested in providing VC funds into the strengthening Asian market. Asia has been on the rise and it will be interesting to see how their own entrepreneurs and VCs will be able to continue to succeed. It is likely that this is the century for the emerging Asian market.

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About Efraim Landa

My name is Efraim Landa I am an entrepreneur and an expert in venture capital. I am the co founder of Effi Enterprises, a venture capital firm as well as the co founder and CEO of Gluco Vista, a company that is in the process of developing a non invasive glucose meter for those with diabetes.

Posted on January 28, 2013, in Business financing, debt financing, economics, Finance, VC financing, Venture Capital and tagged , , . Bookmark the permalink. 1 Comment.

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