Jim Connor Thanks for your sharing.
I just watched the video minutes ago, and it’s great. In China, I don’t know whether you have come to Beijing or not. If not, you definitely should come to Beijing Zhongguancun Inno Way, in this street, there located more than 30 accelerators and startup incubators.
Since the trend of internet startups this round, Chinese people are crazy about it. They need money? There are millions of angel investors with or without verification(mostly not). They need work space? Most of incubators would give them free spaces to work (if they accepted their investment). They need marketing and distribution? Never mind, there always a industry helping people to finish a task.
To me who lived in China, incubators or accelerators, most of them emerged in the recent two years are not what so called the INCUBATOR. Many of them are transferred from rental office space to incubator, or we can say that real estate companies are try to rent their office to startups.
To be honest, this is the first time I heard the name of ChinAccelerator, because of there are too many accelerators and incubators in China. According to a report from China Venture, there were over 1,500 incubators in China (actually, incubator and accelerator are mixed name, they are the same to one meaning in China, and this number including governmental non-profit incubator). And this number is expected to grow to 2,000 this year. That is terrified.
What’ the result of too many incubators?
We all know that startups fails, at a rate about 95%. So too many incubator incubated too many startups, and overwhelming majority of them failed. And to investors, their investment disappeared. Then the capital market shrank, investors would take more time to investigate a startup team and make less but more cautious investment, and those startups who need money to live which can’t stand the wait, would run out of many and crashed on their runway.
What I am saying is not pessimistic, it’s real. But situation is getting better recently, people are getting acquainted with it. And dumb investors exited this market. Eventually, this field would gradually getting better and better. But the gap between China and USA are far far away.