Drawing on visits with Chinese investors, Bohan Lou describes redemption clauses and an IPO-centered exit structure. Some contracts can place repayment obligations on founders if a company does not list within a specified period, encouraging a focus on revenue and listing prospects. The account distinguishes the aims of renminbi and dollar funds and local governments’ industrial-development roles. These are one participant’s observations, not evidence that every Chinese investment agreement has the same terms.
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How redemption clauses and IPO incentives shape Chinese venture capital
A visitor's account of exit routes and founder obligations