VENTURE CAPITAL IN ASIA

Venture capital (VC) is a relatively recent and rapidly growing phenomenon in emerging countries, especially Asia. Economic development in both developed and emerging countries increasingly depends on VC financing, but research on this subject has been scant; and what work has been done has been misunderstood within the context of emerging countries. These economies have shown some of the fastest GDP growth rates globally throughout the past decade. More specifically, VC financing in Asia is beginning to play a larger role in supporting the development of high-potential entrepreneurial ventures. The impact of VC investing on the development of high-potential ventures in emerging Asian economies has not been significantly addressed and is the focus of this book. Venture Capital in Asia: Investing in Emerging Countries initially analyzes VC investment on two levels: first, formal VC firms that invest in institutional funds; and second, informal business angels (BAs) who invest personal funds in small- and medium-sized enterprises (SMEs). The book then analyzes the significance of emerging Asian countries focusing on Vietnam, Thailand, the Philippines, Indonesia and China. Both formal and informal VC investing is analyzed in each of these countries. The analyses offer explanations on how VCs and BAs invest effectively in high-growth potential SMEs in developing countries, even though these countries often lack the necessary financial and legal institutions needed to protect high risk-high return private equity investments. This book will be of interest to venture capitalists, business angels, entrepreneurs, academics and their students, government officials and NGOs interested in developing policy supporting SME financing and bankers working with high-growth potential SMEs.