Case | HBS Case Collection | October 2010 (Revised November 2012)

Shenzhen Capital Group

by Paul A. Gompers, Shaohui Chen, Jessie Lin and Shelley Ling

Abstract

Haitao Jin, chairman of Shenzhen Capital Group Co., Ltd. (SCGC), and Wanshou Li, president of 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 10 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.

Keywords: venture capital; government and business; private equity; Venture Capital; Private Equity; Investment Funds; Growth and Development Strategy; Business and Government Relations; Financial Services Industry; China;

Citation:

Gompers, Paul A., Shaohui Chen, Jessie Lin, and Shelley Ling. "Shenzhen Capital Group." Harvard Business School Case 211-029, October 2010. (Revised November 2012.)