Global Themes

On Globalization & Venture Capital

As China races ahead of UK, whats next?

Six years ago, when I joined Amadeus, I would have been incredulous if someone had told me that China will rank ahead of Israel and UK as the No. 1 overseas destination for U.S. Venture Capital by 2006

But that is exactly what this graph from last month’s print edition of Red Herring reveals.

 china-vc-investments.jpg

…more interestingly, the investment sectors are getting increasingly sophisticated – and last year included sizeable investments in software and advanced materials/speciality chemicals (see graph below):

 china-vc-sectors.jpg 

Whats next, I wonder?…Investment in Shenzhen overtaking Massachusettes and/or Bengaluru attracting more venture dollars than Texas?

.

See also, “Intel is going global, and as goes Intel, so goes the globe

UPDATE: Scott from Library House pointed me in the direction of this fascinating piece of research they did earlier this year: “Break for the border“…It looks at who is crossing borders to invest in Europe…Thanks Scott.

* Source and Copyright: “Venture Goes Global” by Sean Wolfe, in Red Herring, Issue 12th Mar ’07

April 17th, 2007 Posted by | China, Venture Capital in Asia | 2 comments

2 Comments »

  1. I think the more interesting statistic would be average rate of return from each place. On that, I am guessing the US still beats China hands down.

    Comment by China Law Blog | April 22, 2007

  2. Good point…and I think you are right. I will keep an eye out if I come across these numbers.

    Thanks.

    Comment by Shantanu | April 23, 2007

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