• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Is it so bad to take money from Chinese venture funds?

September 10, 2021 by David Barret Leave a Comment

Denis Kalinin
Contributor

Share on Twitter

Denis Kalinin works at venture fund Runa Capital as Asia Business Development Manager, devoted to connecting the Western and Asian VC worlds and bringing long-term value to both.

China is becoming a superpower in the tech industry. According to Straits Times, China is the only place in the world where it takes less than six years for a startup to become a unicorn — it takes seven years in the U.S., eight years in the U.K. and 11 years in Germany. Despite geopolitical tensions and recent amendments in CFIUS, it is hard to ignore China.

When I joined Runa Capital almost a year ago, my task was to help our portfolio companies enter the Chinese market, find the right partners and raise funding from Chinese investors. And almost on every call with our startups, colleagues from Runa or other global VCs, I heard: Is it a good idea to raise from a Chinese VC? Is it OK to co-invest with Chinese investors? I was surprised to learn that there is little research answering such question, as there is a lack of adequate information in English about Chinese investments.

Access to the Chinese market seems to be an obvious reason to invite Chinese funds aboard, but only about 20% of Western startups with Chinese capital have operations in China.

So as a Mandarin-speaking specialist, I decided to fill this gap by conducting a study based on a Chinese VC database ITjuzi (the Chinese version of Crunchbase) with the help of our powerful data science resources developed by Danil Okhlopkov.

Below, I will try to answer the following questions using statistics and a case-based approach:

  • How much do Chinese funds invest abroad?
  • What is the current trend?
  • Can Chinese investors bring any value to Western startups?
  • Who are the most active Chinese investors abroad?
  • In which areas can Chinese funds bring the most value?
  • What value can Chinese investors bring?
  • When is it better to invite a Chinese investor?

Chinese investors are interested in Western startups

After studying data from ITjuzi, we estimated that Chinese funds invested around $250 billion in 2020 (three times higher than the figure in Crunchbase). This figure puts Chinese VC investments only 30% lower than investments by U.S. funds, but three times that of U.K. funds, 12.5 times more than German funds.

Comparison of investment amount from different countries in 2020, $bn. Source: Crunchbase, ITjuzi

Fig. 1 – Comparison of investment from different countries in 2020, $bn. Source: Crunchbase, ITjuzi. Image Credits: Denis Kalinin

However, only 15% of investments in 2020, and 17% of investments in the first half of 2021 were in companies outside China, significantly lower than in 2019. This appears to be because during COVID, China’s economy recovered much faster than other countries’, so many Chinese investors preferred to redirect their capital flows to the domestic market.

On the other hand, there is great potential for overseas investments to rebound as soon as the borders reopen and the global economy starts to recover.

Dynamics of Chinese investments. $bn. Source: Crunchbase, ITjuzi

Fig. 2 – Dynamics of Chinese investments. $bn. Source: Crunchbase, ITjuzi. Image Credits: Denis Kalinin

We can also see that Chinese investors are eyeing European startups favorably, which is related to U.S.-China geopolitical tensions as well as the fact that the European VC market is becoming mature.

Source Link Is it so bad to take money from Chinese venture funds?

David Barret
David Barret

Related posts:

  1. UK card spending slips to 93% of pre-COVID level – ONS
  2. Your next smartwatch could come with not one, but two cameras on board
  3. GM to cut North American production, citing chip shortage
  4. Fujifilm confirms it’s working on high-resolution mirrorless cameras

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Scientists Perplexed By 407-Million-Year-Old Fossilized Plant That Doesn’t Follow The Fibonacci Sequence
  • This Giant Goldfish Hybrid Weighs As Much As A 10-Year-Old – A Stark Warning About Dumping Pets
  • Scientists Gave Mice Neanderthal And Denisovan Genes. The Results Were Intriguing
  • 2024 Saw Higher Levels Of Carbon Dioxide In The Atmosphere Than Ever Before
  • Halloween Fireballs Will Grace Our Skies As The Taurid Meteor Showers Arrive
  • Newly Discovered Hunting Megastructures Suggest Pre-Bronze Age Societies More Sophisticated Than Previously Thought
  • What Is Spectroscopy And Why Is It So Important To Science?
  • Parkinson’s “Trigger” Seen For The First Time: Scientists Image The Toxic Molecules Inside The Human Brain
  • What Flying Animals Exist That Are Not Birds?
  • DNA Evidence Uncovers Surprising Origins Of Native Americans
  • Single Gene Swap “Transfers A Behavior” Between Two Species For The First Time
  • Interstellar Object 3I/ATLAS Has A Rare “Anti-Tail”, New Observations Confirm
  • Asteroid Apophis: Animation Shows Asteroid’s Nail-Biting Close Approach To Earth In 2029
  • Titan Breaks A Key Chemistry Rule: What That Means For Alien Life
  • Scientists Studied “Chicago Rat Hole” – They Have Bad News, The South Atlantic’s Magnetic Field Weak Spot Is Growing, And Much More This Week
  • Could This Be The Real Reason Humans Survived And Neanderthals Died Out?
  • Newly Discovered Snail Species Named After Studio Ghibli Co-Founder Is A Hairy Beauty
  • 2025 SC79 Is The Second-Fastest Asteroid Ever Found – And Only The Second Within Venus’ Orbit
  • When Red Devil Spiders Arrived On A New Island, Their Genome Dramatically Shrank In Half
  • Is This The World’s Oldest Story? Ancient Human Tale About The Seven Sisters May Be From 100,000 BCE
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version