A business plan for StartupChina / an incubator for Chinese E-commerce start-ups

Abstract

StartupChina is a Business Accelerator for e-commerce startups in China focusing on B2B opportunities and technology companies that support the e-commerce revolution. The key to understanding StartupChina's opportunity is to examine the current divide separating the venture capital community from entrepreneurs in China. Venture capitalists increasingly seek to invest greater than one million dollars per deal, in order to maximize fund management fees and minimize operating costs. In China, VC's frequently claim that qualified deals are few and far between. However, there is no lack of entrepreneurs with great ideas. Many young management teams merely need an initial infusion of capital--totaling not more than five hundred thousand dollars--accompanied by an experienced team and professional services to lead them through the startup process and connect them with the venture capital community on the other side. StartupChina thereby serves the needs of three customers: seed round investors, Chinese entrepreneurs, and the international venture capital community. First, StartupChina provides a mechanism for foreign investors to participate in a diversified portfolio of early-stage e-commerce companies in the Chinese market. StartupChina finds the best deals and incorporates them into a balanced portfolio network of companies. Second, entrepreneurs are provided with much needed capital, value-added services, and physical office space so they are able to accelerate the development of their company in preparation for VC financing. The third beneficiary is the venture capital community. By pre-screening, selecting, and developing business plans and management teams that have the highest potential to succeed in the Chinese marketplace, StartupChina will become a crucial sourcing ally for venture capital firms. Over time, StartupChina will become a critical link connecting foreign venture capitalists to high-quality startups in the Chinese e-commerce market.