Gobi Fund Essay

Why is it difficult to establish a new fund? Why is track record so eventful in fund raising? The main concern is to convince the stationors to clothe their money in Gobi. Therefore, it is necessary to deepen a rational-sized fund. To raise a new fund is non an easy thing to do as everything including the fund structure, team, approach, LP base, and amount of capital switch to be defined appropriately. The commonplace partners also need to contribute their own money in align to convince the investors to invest together with them.The track record is very most-valuable in fund raising because if Gobi has a good track record, much investors will be interested to invest in it. Q2. Prep are 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 bay window of pent up expect (IT and digital media). * Gobi can acts like a bridge for western LPs to invest in Chinese companies. It is difficult to rai se a new fund and if Gobi do not really have a good track record, it will become harder to gain the investors leave in order to raise the new funds. May have the good in acquiring a higher return from investment in the IT and media market since they already invest in that industry during the early stage. pith that they already have the experiences in investing 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 ever-changing depends on the situations. The planning horizons may take among 7 to 10 years or maybe longer than that because of a lack of theme and development in the industry. The fund size may be between $100 one thousand million to $200 million allowing around $2 million to $5 million for each company. The subsequent funds should be of kindred size or larger as the industry grows. Gobi wants the first shutting at $75 million. The key is whether to include more financial LPs or not. Q4.From the perspective of a potential LP, what are your excerptions when funding international pore VC funds? Would you fund Gobi? Gobi has never exited from an investment before, and there is high take aim of risks involved in the development of early stage IT companies as good 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.