CIVC was created based on the insight that China is the ideal investment frontier for growth-oriented investors, and that doing business successfully in China requires unique expertise including knowledge about the way the business community and government agencies work in China, as well as a thorough understanding of what makes things happen in China, and most importantly, knowledge of Chinese culture. CIVC possesses these unique qualities for success and the expertise needed for succeeding in China.
The Fund's advantages are summarized as follows:
- Strong government backing and proprietary deal sourcing opportunities: CIVC has a unique and a broad nationwide coverage with Thirteen locations in centers of technological excellence, some with very little PE/VC activity, strong guanxi with provincial and municipal government leaders and executives in large companies.
- Successful and experienced fund managers in a cohesive team: CIVC's team is an ideal blend of internationally and locally experienced professionals, providing a better understanding of Chinese and Western cultures. The Funds' General Partners have assembled a strong multicultural, multi-disciplinary team with broad capabilities and skills. The team is comprised of operationally experienced managers with deep knowledge of technology and markets and a successful track record as executives and investors in world leading enterprises. The combination of Chinese and Western expertise and experience allows CIVC to offer its portfolio companies growth and a competitive edge and to its investors lower risks and better ROI.
- Significat (VC) track record of success: The combined portfolio of the Fund's General Partners (from prior SCGC and PNV funds since late 1999), accounts for 93 companies with more than 30 successful exits and partial realizations of over 40 fast-growing companies that are still in holding.
- Technological global integration know-how: CIVC leverages mature Chinese companies that have significant market growth potential, with complementary successful technologies of Israeli companies. This combination enhances the Chinese companies' ability to become a Chinese market leader and consequently a global company.
- Involved investors with a hands-on investment approach: CIVC's Managers devote substantial managerial and networking resources to each investment, typically leading investment deals and exits thereafter. This intensive contribution covers the entire lifecycle of the investment.
- Faster ROI: The Fund will assist in formulating strategic actions for a faster exit scenario. This will be achived by: The fund's focus on mature and growing Chinese companies with established operations, and strong managment teams; enhanced with proven leading technologies from Israel; structured offshore holdings; together with CIVC's team access to global capital markets will bring about an exit by IPO or M&A with a larger global player, within a desired period of 36 months.
- Extensive technology and industry network (leveraging gunaxi): The General Partners offer worldwide connections to leading players in the investment, finance and technological industries. The General Partners worked with suc partners as: Microsoft, Intel, Simens, Sun Microsystems, Cisco, Checkpoint, AOL, Huawei, Lennovo, TranSwitch, IBM, Motorola, Keppel communications, as well as large corporate and financial investores including Bank of America, Shenzhen Airport Company, Guangzhou Shenzhen Railwat Co. Ltd., ZTE and others. These investors have provided the General Partners with expirtise, knowledge and global networking.
- Shenzhen ("SZ") City's advatages: Shenzhen is the Silicon valley of China; the VC industry in China was pioneered in SZ; a technology hub for telecommunications companies )Huawei, ZTE, TCL); coined: "The city of Innovation and Enterpenurship" by China Science and Tech authorities; 80% of businesses are private; Average age is 30; The SZ Stock Market is geared to smaller companies (formation of GEM Exchange in 2007) like the NASDAQ of China; SZ's proximity to Hong Kong (No. 1 Finanacial Center of China) is great factor in the cities development.
- Significant understanding of China: China has a unique and complex culture; successfully doing business in China requires expertise in the way the business community and government agencies' work, a thorough understanding of what makes things happen in China, and most importantly, knowledge of Chinese culture. CIVC's multi-cultural team has the expertise needed to succeed in China, and CIVC was formed by leading private equity investors that are thoroughly educated in China's high-tech and investment industries. The Fund's investment strategy has been based on the analysis of why foreign companies have not been able to succeed in China in the past, and focuses on how the Partnership can learn from those mistakes. (See more information in China Investment Environment - understanding investment in China).