Research On The Choice Of Financing Channels Of Chinese Growth Stage Internet Enterprises

As a new industry in late twentieth Century.Internet industry has become an important part of the world economy in the early twenty-first Century.Back in the late 90s,China Network-China's first Internet companies listed on the United States,became the Nasdaq's first Chinese Internet stocks.Over the next few years,NetEase,Sohu,Sina,Baidu and other Internet giants have listed in the United States.In recent years,more and more large Internet companies take the financing way of cross-listing,which attracts more and more people study the phenomenon.Ji Weidong,Morgan Stanley managing director,said,the Internet is the most competitive industry in China,there might only one listed company among over 500 companies.According to estimates,the total number of Chinese websites in the past three years fell by 30%.The average time of existence of Chinese Internet companies' is 3?5 years,the average annual natural mortality rate is 20%-30%.Which financing channel that Internet companies choose,has become the key to the development of enterprises.At present,Chinese developing Internet companies have formed a certain financing model.In the early stage,the company has no choice but accept angel investment and venture capital.In the growth period,the enterprises have choice:cross-listing or listing in China.Facing the choice,how they choose to finance among the channels is becoming a serious question which will decide where the enterprises go.There is research of how high-tech innovation enterprises choose financing channels.But few people pay attention to the analysis for the growing Internet companies in China.They are hungry for useful suggestions on how to choose the suitable financing channels.This paper first defines what is Internet enterprise,and discuss the existing financing channels according to the enterprise lifecycle theory.And then summarized how the growth stage Chinese Internet companies choose the right financing channel.That will be a powerful help for all the Chinese Internet companies who is facing the choice.