Gobi Fund Essay Example for Free

Gobi Fund EssayWhy is it surd to establish a new fund? Why is track record so important in fund tiptop? The main concern is to convince the indueors to invest their funds in Gobi. Therefore, it is necessary to appeal a rational- surfaced fund. To raise a new fund is not an easy thing to do as everything including the fund structure, team, approach, LP base, and number of capital have to be defined appropriately. The general partners also need to contribute their own money in order to convince the investors to invest together with them. The track record is very important in fund raising because if Gobi has a vertical track record, more investors will be interested to invest in it. Q2. Prep be a SWOT analysis for Gobi Fund II proposal in the stage setting of venture capital fundraising. Gobi operates in an area where there is a lot of pent up contend (IT and digital media). * Gobi drop acts like a bridge for western LPs to invest in Chinese companies. It is difficult to r aise a new fund and if Gobi do not really have a good track record, it will become harder to gain the investors trust in order to raise the new funds. may have the advantage in acquiring a richlyer return from investment in the IT and media market since they already invest in that industry during the early stage. Meaning that they already have the experiences in expend in IT industry, therefore, may not become a problem to earn a high return.What are the keys to raising the second fund and how large should it be? There is no definite answer in this question as they could be changing depends on the situations. The planning horizons may take between 7 to 10 years or maybe longer than that because of a lack of infrastructure and information in the industry. The fund size may be between $100 million to $200 million allowing some $2 million to $5 million for each company. The subsequent funds should be of similar size or larger as the industry grows. Gobi wants the first close at $ 75 million. The key is whether to involve more financial LPs or not. Q4.From the perspective of a potential LP, what are your choices when funding international focus VC funds? Would you fund Gobi? Gobi has never exited from an investment before, and there is high level of risks involved in the training of early stage IT companies as well as huge risks that may impede company development and growth. However, Gobi operates in an area where there is a lot of pent up demand (IT and digital media) and Gobi can acts like a bridge for western LPs to invest in Chinese companies. It may be a good choice to invest in it if it offers a rational return considerate with the level of high risks involved.