THE CHINA INNOVATION CENTER
MIU's Founder has always been committed to furthering education around the globe and has had great success fundraising the capital to do so and then using that capital to educate those who do not have good access to education.
Before MIU, our funder worked through the China Education Group and Dalian business institute to be the first ever Chinese virtual interest entities in the education sector to list overseas in 2005, to raise money in western capital markets. Both companies successfully raised money to develop their education programmes in China. This success led to a number of other Chinese education VIE listings in western markets over the course of the next ten years. Across the span of the decade, these companies raised over $1 billion allowing hundreds of thousands, if not millions, to study courses which then led to the creation of thousands of jobs and hundreds of businesses.
CHINA EDUCATION GROUP
China Education Group (CEG) was a Jersey incorporated company with an exclusive 25 year management contract to run Shangdong International Institute of Translation (SIIT). Student intake over the period increased by 3,000 to 11,000, and higher margin overseas students increased from 280 to 490 for the period.
CEG was an established, profitable business with a track record of growth. It was one of the few private-run colleges in China with all diplomas officially accredited by the Ministry of Education of China. CEG had a successful tract record on students' personal development, cooperation with Tsinghua University providing further high level education opportunities, attractive and convenient campus locations that support future enrolment growth and a practical and diversified curricula.
DALIAN BUSINESS INSTITUTE LTD
Dalian Business Institute Limited (DBIL) was a Jersey incorporated company with an exclusive 25 year management contract to manage Dalian Business Institute (DBI).
DBI was a profitable college based in Dalian, Liaoning Province in Northeast China. DBI was a nationally accredited college providing 3 year college courses and 'shorter term' training courses. The college had a student population of 5,000.
VARIABLE INTEREST ENTITY (after 2005)
Investing in China's Education Industry. Following the success of CEG and DBIL, the following Chinese education businesses listed in western markets using the same method and between them raised over $1 billion with a combined market capitalisation of $7.5 billion. Millions of people have followed courses from education VIEs which were able to raise money through the route that we pioneered.
New Oriental - 2006
Chinaedu Corp - 2007
China Distance Education - 2008
Tal Education - 2010
Xueda Education - 2010
THE STORY OF EDUCATION VIEs
China Education Group was the first VIE in the education sector and the first to raise money in western capital markets. We carried out research into the best routes and following authorisation of the Chinese government, we established that investors would be enthusiastic in supporting this innovation and we were the first to apply the rules for an education VIE.
Three Key Reasons for Continued Growth in China's EdTech Market, According to Forbes Article
CULTURAL VALUES
SCALE OF POPULATION
GOVERNMENT SUPPORT
China's educational sector expansion attracted significant investment through Variable Interest Entities (VIEs), introducing Western funds and educational partnerships to Chinese universities. This pioneering approach led to numerous listings, raising over $1 billion for Chinese education.
London Asia Capital, with 32 offices in China, promoted education VIEs, using their example to garner substantial publicity.
The popularity of VIEs surged as investors recognized their potential. Promoted through RNS announcements, articles by industry specialists, and investment conferences, the value of VIEs in education became widely recognized. Advisors in the Cayman and Virgin Islands further disseminated this innovation by working on or advising subsequent VIE education listings.
By July 2011, according to an Insider Article, eleven Chinese education service companies were listed in Western markets, offering services like foreign language training, student tutoring, distance learning, and professional education. These companies significantly impacted the virtual learning world, positioning China as a global EdTech leader.