Chinese VC in Silicon Valley, likable?
Heard from your friend, China has lots of funds waiting for investment, and the market has huge need for frontier tech. So why don’t you think about that? After all, there is no difference on cash.
According to Rhodium Group, Chinese investment in Silicon Valley has exceeded $ 6 billion before June, 2016(no real estate investment included), and more than half of it was during the last 18 months. Chinese investors are looking for tech in AR and VR, and Silicon Valley are more interested in the Chinese market.
These investments are from BAT, PE, family foundation, and of course, government and state-owned cooperates.
How does it looks like?
Under different business culture and language, it’s hard to make agreement on things. US start-ups have concerns on IP and security issue, while Chinese investors doesn’t want prejudice being seen as “Made in China.”
There is a chance, there is a solution. With more and more investments goes on, Silicon will find a way to cooperate with Chinese investors.
Is it that simple?
These funds are looking for ideas that applicable in China, this needs the project find its market in China. In one way, having the connection of these funds in China will make it easier to enter the market; however, how many changes does it needs to make for Chinese market? Is it too early to enter an oversea market? How much money should invest in an oversea market without information on financing the project?
Is it that complicate?
With the connected world, information flows freely in countries. China has the firewall, but still has the customer need. Capital could flow freely in the international market finding a good spot to settle, and products could make a good sale as long as it meets the customer need. With the tax refund policy and well educated professionals, Chinese business has make huge success in different countries.
In the global business environment, VC is changing its way as an investor to a resource provider. In choosing a VC, start-ups will put the resource into consideration. In all, nobody is happy for losing a market of 1.3 billion users, we can tell from Uber.