SUBJECT AREAS: Emerging markets, Fraud, Investments, Venture capital CASE SETTINGS: China; 8 employees; 2004 The general partners of Gobi Partners, a venture fund located in Shanghai, are trying to decide the best way to raise money for their first fund. Their strategy of investing in early-stage digital media companies in China was well-received by strategic investors - IBM and NTT DoCoMo are
... [Show full abstract] cornerstone investors in the fund - but classic institutional investors are wary of such a targeted approach, despite the team's successful track record with different private equity groups. Over a year after their first closing at 100 million fund. But how, without either abandoning the strategy that has won them a measure of success in such a short time or bringing on more strategic investors with goals that might conflict with those currently in the fund?