While there are many ways of investing in a business, IPO Pang has been a pioneer in facilitating Chinese investments in foreign enterprises through “grant backs.” This type of investment has been popular with technology companies as well as startups that are, as yet, unable to show a track record of substantial sales, but otherwise have patented or proprietary technologies. In a typical case, the capital seeker would seek an investment of $3 to $5 million; in return, the Chinese investor or investor groups would receive shares of stock at the prevalent valuation plus the right to distribute, license or manufacture the products in China (pursuant to a distribution or license agreement or a requirements contract). This model has worked exceedingly well because it is a win-win for both sides. The foreign capital seeker receives a truncated due diligence process, is able to capitalize his business on short order, and maintains control of his business. The Chinese side receives company shares at competitive rates and valuation while it is given the right to develop the business in its home country when the business or technology proves successful.
IPO Pang can facilitate your business in matching you with Chinese investors. Contact one of our associates for further details on prerequisites and requirements.