BIZCHINA> Center
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BIZCHINA> Center
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Chinese medicine for US flu
By Joy Li (China Daily)
Updated: 2008-05-09 10:14 With so much money pouring into China in so short a time, many in the Valley can't help noticing similarities to the investment surge in the US in the late 1990s. Gary Rieschel, managing director of Qiming Venture Partners, quipped: "Lots of first-time entrepreneurs, lots of first-time VCs, brutal competition, support infrastructure (legal, accounting and banking) lagging, and due diligence lacking. Could this be another bubble?" Speakers and audience members swapped opinions and came away with measured optimism. Ni warned there would be short-term turbulence and consolidation, while Shong believed that China could avoid a Valley-style bubble by investing with discipline and that winners would be those who do so and are left standing after consolidation. "The Valley always has boom and bust cycles ...," said Breyer, "We expect China to behave similarly, but China is a more interesting market simply because of its entrepreneurs, its intensity and the diversity of business models." Along with Ni and Breyer, almost all speakers stressed that a long-term vision will pay off in China. "In China, you must be patient. Success takes time." said Ni. Geoff Yang, managing director of Redpoint Ventures, used "air pockets" to describe the potential short-term turbulence. "Sure," he said, "but it's hard to bet against (an economy) growing at 8-9 percent. Some huge winners will emerge." An entrepreneurs' panel discussed emerging sectors attractive to VC and PE funding. It was clear that in China, unlike in the US, technology is not the only VC-worthy industry. Sectors ranging from technology, media and telecommunications to food and drink have experienced growth rates as high as 100 percent year-on-year. (For more biz stories, please visit Industries)
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