Raising Entrepreneurial Capital

counterparts in North America and Europe. This situation is not a critical

roadblock to the development of a robust venturing process in Asia, but it is

worth noting that in most places there may be fewer university graduates and

professors interested in starting new companies. China is an exception to this

rule. In China, universities own and operate their own for-profit companie s

and it is common for professors to be involved in for-profit businesses.

Corporate venturing by the likes of Intel

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is an important source of

venture capital in Asia, proportionately more so than in the West. Thi s

fact can be a significant advantage to you, as you may feel more comfor table

working with a Western company as an investor than to work with a local

Asian VC firm, even though the business itself is located in Asia.

From historical perspective, it is interesting to note that the VC industries

and practices in most Asia countries were started, or certainly urged along,

by funding from the International Finance Corporation.

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Japan is the only

notable exception, having developed its VC industry and practices internally

based largely upon the U.S. model.

LISTING ON A STOCK EXCHANGE OUTSIDE THE

UNITED STATES

Nearly every country in the world has a na tional stock exchange, often

for the same reason they have a national airline: prestige. Like the national

airlines, the national stock exchanges do not always make economic sense as

stand-alone enterprises. Consequently, they are experiencing competition

and consolidation, especially in Europe, where the trend will probably

continue for some years to come.

This situation could work to your benefit, should you decide in favor of a

public offering, as the exchanges compete with each other for new listings.

They especially want to attract listings of foreign companies, as that adds to

the prestige and competitiveness of their exchange.

Of course, you must have a good reason for taking your company public,

regardless of the exchange on which it is listed. The primary drawback to

listing on a foreign exchange is not the regulatory environment, the cost of

listing, or even necessarily the task of convincing foreign investors to entrust

their money to you. In fact, some of those issues may be less daunting in

other countries than in the United States The real drawback is the low level

of liquidity of the shares after they are lis ted.

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www.intel.com

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www.ifc.org

Opportunities to Do Business and Raise Capital Globally 369