Shenzhen Capital Group: A Pioneer in China's VC Industry

Posted: 19 Mar 2012

See all articles by Paul A. Gompers

Paul A. Gompers

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Shaohui Chen

Harvard University - Business School (HBS)

Jessie Lin

affiliation not provided to SSRN

Shelley Ling

Harvard University - Business School (HBS)

Date Written: January 4, 2012

Abstract

Haitao Jin, Chairman of Shenzhen Capital Group Co., Ltd. ("SCGC") and Wanshou Li, President of the SCGC must decide how to continue to grow their venture capital/private equity firm in China. SCGC is a premier VC/PE fund in China and a pioneer of the Government Sponsored Fund (GBF) structure. The firm had grown to RMB 20 billion in just ten years and had funds in 29 different cities across China. As competition for investments becomes more intense, Jin and Li must decide the growth and strategic direction that SCGC should pursue. The case highlights the important success factors for VC/PE investing in China as well as the important role that the Chinese Government plays in the financing landscape.

Learning Objective: To teach business environment and investment issues for private equity and venture capital in China.

Suggested Citation

Gompers, Paul A. and Chen, Shaohui and Lin, Jessie and Ling, Shelley, Shenzhen Capital Group: A Pioneer in China's VC Industry (January 4, 2012). Harvard Business School Finance Case No. 211-029, Available at SSRN: https://ssrn.com/abstract=2025000

Paul A. Gompers (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6297 (Phone)
617-496-8443 (Fax)

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Shaohui Chen

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Jessie Lin

affiliation not provided to SSRN ( email )

Shelley Ling

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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