For most websites, winter of 2008 is really cold. In China, 2008 is the tenth year of the internet sector, most of the famous website were not born in 1998, such as Baidu, QQ, SINA, ALIBABA and NetEase, etc, not to say the newly-appeared stars, such as YOUKU, TUKOU and some SNS. All these websites were supported by VC capital in the early stage of their development. Just like in other countries, VC capital is the most important power to push this emerging internet and information technology industry.

But for now, it's more difficult for a traditional websites to get VC in China. Below is the mainly three reasons.

Firstly, lacking liquidity is a widespread phenomenon in the background of global finance crisis and recession. America is the biggest supplier of VC capital, but in this finance crisis, the US financial institutions face the biggest problems, most investors have huge losses in their investment. As a result, they would not invest in VC fund but the more- safe treasury securities, treasury bonds or treasury bills.

Secondly, China increases governmental regulation on internet sector in the past year. In December 2007, government banned all websites operating online lottery sales, which made more than 700 websites dead or hibernation until now; also in December 2007, China's State Administration of Radio, Film and Television (SARFT) and Ministry of Information Industry (MII) have co-published the new Regulations for Online Audio and Video Services, according to the regulation, all online audio and video service providers will be required to apply for an "Online Audio-Visual Broadcasting License", key qualifications for which include: being majority STATE-OWNED and possessing a comprehensive program censoring system, legal program resources, legal funding sources, and "standardized technology". This regulation made some famous online video service provider in an illegal condition. All these are considered as policy risks for investors, which make many VC hesitating on investing in the traditional websites.

Thirdly, the emergence of wireless mobile internet attracts more VC's attention. For traditional internet has developed in China for more than 10 years, this is a red sea in many people's eyes. However, the wireless mobile internet is a blue sea and only in its seed stage.

For the above three reasons, it's difficult for a traditional website to get VC capital now. Under this circumstance, how could a traditional website get through this cold winter? I give the following four suggestions:

I Have faith. Some website can develop well without VC's investment, and after the rebound of the capital market, which is estimated in later 2009, the VC would be active involved in the investment again then.

ii Cut cost. The lower-cost can make the project survive for a longer time, and have the competitive advantage on peer websites.

iii Strengthen basic skills. During fierce completion, the basic skills are always ignored; however in this winter, the project can focus on the basic skills of the team and each team member. For a content website, it's increasing content and attracting visits; for web-game website, it's learning players' demand and improving the game design; for B2C website, it's learning the potential clients' demand and maintain these clients.

iv Promotion. Internet is a media in a broad sense. For a media, finding the target audience is the most important thing; attracting the audience and keep their interest is the second. The value of a website greatly depends on its effect visits, of which the visits are the precondition. Don't stop promotion even in the winter, although you can choose a lower-cost option.

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