Along the way, entrepreneurs and venture capital firms are turning their attention to new opportunities, moving away from the internet industry of yesteryear to core technologies such as chips, robotics and enterprise software. Last year, the biotech industry attracted $14.1 billion in investment, a 10-fold increase from 2016.
Jiang Jingjing, a lawyer in charge of financing at King & Wood Mallesons in Hong Kong, said: “Investors’ interest in China’s technology industry has not changed. What has changed is where they put their money. It is clear that more and more capital is flowing to start-ups with cutting-edge technology. company.”
The Chinese market still lags behind Silicon Valley in total venture capital investment. Last year, venture capital in the U.S. market totaled $296.6 billion, also setting a new record. However, in some basic technologies, China has surpassed the United States. For example, Chinese chipmakers, integrated circuit design firms and other semiconductor industry startups received $8.8 billion in investment last year, compared with $1.3 billion for their U.S. counterparts, according to Preqin. While U.S. President Joe Biden is working to elevate the U.S. chip industry, Chinese chip startups are more sought after.
Yong Luo, a former Intel engineer, has already completed financing for his new chip company, but it could be two years before he gets paid. “The Chinese market is very hot right now, and the chip industry is really hot,” he said.
Alicia García-Herrero, an economist at investment bank Natixis in Hong Kong, said: “China is very aware of the importance of innovation for the future, especially in buffering the impact of aging and excessive capital accumulation on economic growth. Investment in deep technology is absolutely key. “