Working with Team Kapital means that your company gains the benefit of our preferential market access and well-earned business and political relationships in China, underpinned by our knowledge of the listed and private company regulatory and funding environment in Europe, the US and Asia.
We believe that fundraising and China market access should be a ‘success’ business, so one of the features of working with Team Kapital is a collaborative agreement where our own objectives are closely aligned with yours. We ask for payment of an initial fee to cover set up and administration costs (with reduction available for small companies) but thereafter our rewards are only paid on success.
When one engages with China, access to investors is just one step in a long chain of activities.
In the past it was necessary to create a Joint Venture in China with a local business. But no longer: for the majority of circumstances the most appropriate current strategy in China is to establish a WFOE – a wholly foreign owned entity – which, as the name implies, is a 100% owned subsidiary.
Establishment of a WFOE creates a recognised local presence, demonstrates commitment to the China market, provides a focal point for the many non-dilutive funding opportunities now available but retains full control.
Recent improvements in the business environment have accelerated the company set up process. The first time we set up a WFOE in China the process took nearly eight months of detailed work before we gained approval.
The Chinese government continually updates processes that are seen to inhibit international trade and has streamlined the company set up process. Whilst the process is still not as fast as company set-up in the UK, with appropriate knowledge a WFOE can now be set up and receive the necessary business licenses, bank accounts and approvals to commence operation within one month.
Other services are also an important part of the Team Kapital package, adjusted to suit each company’s requirements. Do you need:
- equity investment and non-dilutive funding
- help establishing a market presence in China
- access to clinical trials support
- access to Chinese manufacturing capabilities
- assessment of a particular science park location
- out-licensing opportunities, or
- access to hospitals, businesses, government institutions and leaders
To be effective in China one needs to provide a full suite of these services. We have done it for our own companies via sister business DynastyBio and we now share our experience and preferred relationships with UK companies so that they can access this extraordinary market too.
… frequent opportunity to raise non-dilutive funding – what the Chinese call “Free Money”
Business parks in China are largely Government owned, and funded. This provides frequent opportunity to raise non-dilutive funding – what the Chinese call “Free Money” – which is used to attract companies to individual science parks. Funding can be obtained through a grant application process and the revelation of Covid-19 is that UK companies can now attend initial pitching sessions remotely. Such grants require establishment of an entity on the relevant science park however the company set up does not need to be completed until an application has been confirmed as successful.
Team Kapital staff in China assist with applications (in Chinese), development of pitch documentation, local follow up and company establishment. Note that all relationships in the UK are managed at all times by the UK team, supported by Chinese colleagues.
So what are the benefits of working with Team Kapital? Learn more from the options below: