Inspired by the shiny American venture capital industry, China has been on the way to engineer its own vibrant venture capital market since the middle of the 1980s. The development of the Chinese venture capital market has been rapid but accompanied by the fact that Chinese domestic venture capital has been marginalized by their American competitors during the developmental process. The lack of Chinese pension funds in financially supporting Chinese domestic venture capital partially explains the imbalance and distance between American venture capital and Chinese domestic venture capital. In order for Chinese domestic venture capital to level the playground in the aspect of fundraising, a double-faceted approach including the revision of law and the delicate design of private ordering ought to be respectively relied on by the Chinese authorities and Chinese pension funds.
Business Law Review