Global Themes

On Globalization & Venture Capital

Feeling the heat in China…

Last week, I shared a panel at the China Venture Capital Forum at the Hilton in London with Gerry Montanus from Atlas, Jean-Bernard Schmidt from Sofinnova, Andy Tsao from SVB Global and Kevin Wang from Natixis, moderated by Max Burger-Calderon from Apax.

The panel was part of the day long discussions and panels about the Venture Capital environment in China…The buzz was unmistakeable, the energy and optimism was evident…the ambience very very close to what I sensed the day before at EuroMoney’s India conference.

I heard some startling stats:

  • 50% of VC-backed companies in China exited via an IPO last year (the comparitive figures for US and Europe are closer to 10% and 20% respectively)
  • The median return in VC in China is now ahead of the global top quartile (- I think this is what I heard but I am not entirely sure)

There was the inevitable talk of the market being overheated…so, whats new?

On my panel, we discussed entry strategies for getting into China and everyone agreed that as a VC market, it is coming to a point where it cannot be ignored. Gerry and Jean-Bernard shared Atlas’ and Sofinnova’s approach to the region and how they had slowly begun to dip their toes in the water.

Everyone complained about valuations…except the entrepreneurs.

For young Chinese men and women with ideas, these are heady times.

July 1st, 2007 Posted by | China, Europe and Asia, Venture Capital in Asia | no comments

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