Saturday, April 20, 2013

Top Five Rasons that EB-5 Projects Fail in Marketplace

(By Brian Su) Every year there are two or three dozens of EB-5 projects of all sizes available to investors in the Chinese capital marketplace, some projects are taken by investors quickly, some projects take much longer time and extra efforts to raise capital, and certainly a few eventually withdrew from China completely.  Chinese EB-5 investors market is highly competitive, and some of my friends describe it as "cut throat" business in China.  There are many reasons why projects are not able to effectively and timely raise capital in China, I have summarized top five reasons that EB-5 projects fail in Chinese market:

1) Project's capital stack and investment offering are not well structured, therefore project is lack of competitiveness in the marketplace;

2) Project's presentation materials such as PPT and video are poorly prepared or improperly translated. As a result of poor work, only errors (rather than project's merits) are noticed by emigration agents;

3) Project developers (and/or EB-5 regional centers) fail to conduct thorough due diligence on Chinese emigration agents (brokers), they partner with the wrong team which cannot delivers timely results; 

4) Project developers (and/or EB-5 regional centers) fail to develop and implement an effective China market entry strategy and they rush into the marketplace without full readiness; and

5) Projects do not have preferred tastes or flavors that attract Chinese investors, sectors such as startup, high tech, medical related products and technology, are typically considered high risk.

To learn more about effectively raising EB-5 capital in China, contact us today at info@ArtisanBusinessGroup.com or log on http://www.CallBrianSu.com for a private advisory session.