US Gateway : Emerging Market Program

Frequently Asked Questions

1. Do I have to be one of the top three companies in my industry category to be considered for your program?

No. We strive to partner with Chinese companies that offer the best chance of succeeding in the US marketplace. We will consider any company which is an innovative industry leader in their category.

2. How can US Gateway deliver such value?

US Gateway's purchasing knowledge base is utilized for the Chinese companies entering the US market that currently do not have existing relationships in place which translates to less purchasing power. The Chinese companies will be entering the US market at an unprecedented pace in the years to come. During the Internet company boom, new companies were subjected to price gouging because their new management was typically unskilled in these types of purchases and historically overpaid for media and various other services. By doing this they have created a big payday for the media companies and suppliers like never before and, in the process, the new companies have vaporized a large portion of their spending power, media value and effectiveness drastically cutting their chances of survival and success.

3. Why would Source China reject a prospect?

The most common reasons given for rejecting a deal are insufficient growth potential, over priced equity, lack of sufficient talent in management, a lack of information about the entrepreneur or key personnel or, most importantly, inexperienced, irrational expectations or an incompatible business plan. Our staff can only focus on a finite number of industry categories and companies before we dilute our greatest asset, our branding experience.

4. Is US Gateway at Risk?

Source China shares in the Chinese company's risk by participating with equity in your new US brand. If you are not successful the equity has no value to anyone. In addition, when we take our payment from you in product we assume the risk of selling this product in order to get paid. This is our investment in your new brand. This vested interest ensures a full-focused commitment to success.

5. How do you compete with other Investment Companies who have such a powerful client list?

Wise investments don't make a VC or private equity firm a branding or operational expert. Just receiving money is not enough. You need human capital (talent) to execute the plan. Take a good look at the backgrounds of our management team and partners (www.nexiastrategy.com). You can't put a price on this type of real-life marketing expertise.

6. Will your Chinese company need additional capital to enter the US?

Because Source China provides an investment covering a large percentage of your potential expenditures you would still require an additional cash investment for additional services which any successful growing company will encounter. US Gateway's goal is to give your new brand the jumpstart and launch it needs. To hedge a startup's bet it would be best to receive critical services from Source China and an investment from one or more conventional investors. We can also help you raise additional money by formulating a US business plan agreeing and committing to be your first funding source and then, in unison with your management, present our mutual plan to qualified investors who bring additional value to your US brand strategy and launch. In this day and age it's not enough to offer just money. All and all, the hottest new Chinese companies entering the US can only get bigger faster with experienced branding and fi nancial professionals on board. Source China and the Mirabilis Network US Gateway program is one of the most important partners your brand could have.

7. Why trade equity and products instead of paying cash?

For one, there never seems to be enough cash. Also, equity induces outsiders to become insiders. Try paying a Senior level employee that is critical to your company's destiny in cash alone and see what you get. By exchanging equity for the US Gateway services you get us to go the extra mile. We become a partner, thinking long-term in aligning our objectives with yours. Unlike firms that are paid 100% cash to deliver financial or operational services, we are betting on your success by accepting product and equity in lieu of cash thus receiving a vested interest in your new US brand. Most likely you would not get the same commitment and results merely from a cash investment. By partially paying with product you also gain critical US market share virtually overnight. In order for us to be compensated we need to place the product which you traded to us which automatically gives you US market share.

Unquestionably, this is the right motivation for a long-term relationship.