Many US executives have heard horror stories of endless delays, outright fraud or patent infringement involving Chinese investors.
Whether there’s a kernel of truth in these stories or they’re simply urban legend, the fear prevents some potentially productive investment deals.
We’d like to report on one deal involving a former client, which has gone well for both the US-based life science company and the Chinese venture capital firm.
The US-based life science company is Cerevast, a private company based in the Pacific Northwest, which is in its pivotal clinical trial for a stroke treatment device. The company hopes to show in this clinical trial that its device enhances the effectiveness of tPA, a drug which is widely administered by hospital emergency rooms to stroke patients.
Cerevast was completing its Series C round of financing when Haiyin Venture Partners expressed interest in the company.
In contrast to common notions among US life science companies, Cerevast and Haiyin proceeded to rapidly strike a deal which enabled Cerevast to raise capital that was important for its trial.
For Haiyin, the Chinese market presents a large potential market where incidence of stroke is common.
The horror stories about Chinese investment in US life science companies get most of the attention but this example reveals that there are good experiences as well.
Forbes Magazine Asia recently ran a story about the Cerevast and Haiyin deal and the potential for more of these cross border investments in the future (click here).
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