Nailed it! Here's a few opinions on startups in China from more than 10 years here: * Its too difficult to raise capital on something that has no IPO potentia

Nailed it! Here's a few opinions on startups in China from more than 10 years here: * Its too difficult to raise capital on something that has no IPO potential, so don't try it in Beijing or Shanghai unless your swinging for the fences. If your not, go to a second tier city. I've recently moved to Chengdu to try my hand at a "smaller" city. I'm living next door to TianFu Software Park. If anyone wants to collaborate in Chengdu, get in touch (see my profile). * Live in China long enough to develop strong bonds with local Chinese you want to be in business with. I would not attempt a startup in China without either a) very deep pockets or b) a local Chinese partner I trust. I'm married to my partner. As most founders will tell you, your co-founder relationship is like a marriage so choose wisely. * Company structure - Its very complicated and expensive if you start your corp structure outside of China and eat your way inside. If you have a solid local partner, most of these problems go away. You can form a Chinese company, usually with favorable tax incentives, that you directly own no shares in but has a contract for shares and revenue with your desired non-Chinese entity. This may set off alarms for some as a good way to get ripped off down the line, but there are so many ways to get ripped off, this one isn't worth dwelling on...so choose your co-founders carefully. * Employees - The cultural barrier is high on this one. I'm hoping that by casting a wider net and treating more of my "employees" as "partners", I may have a fighting chance. A key reason employees don't trust stock options is they have zero friends that have been favorable rewarded with them. Most get ripped off. The best way to show your going to share the wealth is to actually do it! My current plan is to have several small projects, some of them immediate revenue generating, and include a core group as partners in all of them so there's a safety net when one project doesn't pan out. We'll see. Its a new adventure.