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DragonVenture Representatives Invited to Speak at Prominent Beijing Science-Technology Park

Beijing, China, April 2, 2001 - Representatives from DragonVenture, Inc. were invited to speak today as part of Zhongguancun Science-Technology Park's "Venture Capital Educational Seminar Series." There were over 40 founders and CEOs of startups in attendance to hear speeches from Tony C. Luh, Managing Director of DragonVenture, Edwin R. Yeh, Vice President of Technology of DragonVenture, and Charles Law, Principal Attorney for King and Wood, LLP, and Legal Advisor of DragonVenture. Commonly referred to as the "Silicon Valley" of North China, Zhongguancun has over 6000 startups on its list of incubatee companies.

Invited speakers to Zhongguancun Science – Technology Park in Beijing, China.
From L-R: Charles Law, Principal Attorney for King and Wood, LLP, and Legal Advisor of DragonVenture; Tony C. Luh, Managing Director of DragonVenture; and Edwin R. Yeh, Vice President of Technology of DragonVenture.

The DragonVenture representatives spoke about the following topics:

The Core Competency of VCs - How They Came About and How to Leverage Them, given by Edwin R. Yeh.
Starting A New Business, given by Tony C. Luh.
Introduction To Reverse Merger Via Over-The-Counter Bulletin Board (OTCBB) Market As A Potential Route To Exit, given by Charles Law.

Dr. Wang Luyu, Vice President of the Administrative Committee of Zhongguancun, gave the opening speech and introduced each of the speakers. He welcomed the increased cooperation between DragonVenture and Zhongguancun and expressed interest in providing the startups continued opportunities to absorb and exchange insights from experts in Silicon Valley. He also announced the opening of a permanent office in Zhongguancun for DragonVenture to provide soft-incubation services to qualified startups.

Tony Luh, Managing Director of DragonVenture, thanked the officials from the Zhongguancun for providing the opportunity to engage with the startups and to share DragonVenture's knowledge and experience. Luh envisions monthly seminars involving DragonVenture, and hopes to provide individual consultation to startups in Zhongguancun on an as needed basis. DragonVenture will also be looking for particularly promising startups to invest in and provide in-depth incubation consulting services to.

Edwin Yeh, Vice President of Technology gave a speech about the core competency of VCs based on his own personal experiences and his experiences with talking to other Silicon Valley VCs. The intent of the speech was to peel away the mystery of VCs (which are not yet an established institution in the emerging China market) and increase the understanding and mutual trust between both VCs and startups.

Luh followed with his speech on Starting a New Business. Luh touched on the critical success factors a startup needs to have and related some of the typical traps and errors that startups encounter. The talk was well received and created quite a few nods from the audience.

DragonVenture's Legal Advisor, Charles Law, then described an alternative exit strategy that, while not as well-known as other exit strategies, is potentially viable for certain startups in China. Rather than going IPO in public markets like the New York Stock Exchange or NASDAQ, both of which have stringent requirements, Law described an alternative exit strategy which included being listed on the Over-The-Counter Bulletin Board (OTCBB) market via reverse merger. He gave a few examples of Chinese companies that have successfully been listed including Bluepoint Linux Software Corporation, a Linux software company based in China.

At the seminar's conclusion, the speakers were surrounded by representatives from startups with questions. Several of them have subsequently been asked by DragonVenture to submit business plans and executive summaries for further review and possible engagement. Through seminars and cooperation with institutions such as Zhongguancun, DragonVenture hopes to cultivate deeper future relationship as well as gain access to the future Microsoft, Cisco, or Yahoo! of China.