ABSTRACT
This chapter argues that institutions which includes cultural norms, customs and traditions have a significant impact on venture capitalists (VCs) decision preferences in China. It suggests that institutions and cultural norms, customs and traditions, in particular, affect not only how VCs use information but also what information they use. Therefore, in spite of the rapid growth of the venture capital industry and the global nature of this form of finance. The chapter finds that there are significant differences in decision preferences between Chinese venture capitalists and their counterparts in Western developed economies. China has an institutional environment that is less developed, has more diverse and complex social and cultural dimensions, and is still in the early stages of institutional isomorphism. Entrepreneurs are keen to have insights into VC decision preferences to gain an advantage when seeking VC funding. However, knowledge about the VC decision preferences in China is limited.
