Two recent articles discussing China have caught my eye. The first is the VentureBeat article "As venture capitalists turn their backs on China, funding dries up." This article starts off by saying that "venture capital investment is hitting the skids in China..." and points to data indicating a steep decline in venture deals and investment in the first quarter of this year. Reasons for the decline are cited as the exit markets not functioning, a loss of belief in the China fast growth story, a slow-down of Chinese economic growth, reallocation of capital to US deals, and the impact of recent Chinese accounting scandals.
The second article is from the From the Crowd blog on Fortune Term Sheet entitled "VCs 'turn their backs' on China?" in which contributor Jeff Richards of GGV Ventures provides some of his thoughts on venture investing in China. He provides a balanced view of the risks of investing in China and the benefits of investing in China. His points are (1) good investors invest in both good and bad markets; (2) VCs must work harder now to find the best companies; (3) the Chinese domestic market opportunity is real and growing; and (4) the risks are real and remain, but real VCs will remain and the tourist investors will go home.
Links to the articles:
VentureBeat: http://venturebeat.com/2012/05/08/vc-china-funding-dries-up/
From the Crowd: http://finance.fortune.cnn.com/2012/05/09/vcs-turn-their-backs-on-china/
The second article is from the From the Crowd blog on Fortune Term Sheet entitled "VCs 'turn their backs' on China?" in which contributor Jeff Richards of GGV Ventures provides some of his thoughts on venture investing in China. He provides a balanced view of the risks of investing in China and the benefits of investing in China. His points are (1) good investors invest in both good and bad markets; (2) VCs must work harder now to find the best companies; (3) the Chinese domestic market opportunity is real and growing; and (4) the risks are real and remain, but real VCs will remain and the tourist investors will go home.
Links to the articles:
VentureBeat: http://venturebeat.com/2012/05/08/vc-china-funding-dries-up/
From the Crowd: http://finance.fortune.cnn.com/2012/05/09/vcs-turn-their-backs-on-china/
