Another month, another billion dollars in value appreciation

VC Surge

Despite regulatory challenges, Chinese startups have experienced a remarkable surge in venture capital investments. Alex Wilhelm highlights that Q3 2021 saw around $25-26 billion raised across approximately 2400 rounds, marking one of the best quarters ever for Chinese startups 1. This is particularly surprising given the Chinese government's crackdown on major tech companies, which were also active investors.

It's a record quarter for funding.

--- Mary Azevedo

Natasha Mascarenhas suggests that some companies may be focusing on international markets to navigate local regulatory landscapes 1.

   

Global Focus

Chinese startups are increasingly targeting international markets to mitigate domestic regulatory risks. Natasha Mascarenhas notes that edtech companies, for example, are setting their sights on India 1. This strategy allows them to continue raising significant capital despite local challenges.

You can be a company based in China and not be focusing on markets within China.

--- Natasha Mascarenhas

Alex Wilhelm adds that the U.S. market remains highly attractive for startups, as evidenced by the continued formation of Delaware C Corps by companies based outside the U.S. 1.

   

Founder to Investor

The transition from founder to investor is becoming more common, with many founders leveraging their operational experience to succeed in venture capital. Alex Wilhelm discusses how Ankur Nagpal, founder of Vibe Capital, plans to invest internationally and live in various countries to better understand local markets 2. This hands-on approach is seen as a way to build stronger connections and make more informed investment decisions.

Founders know how to talk to founders.

--- Natasha Mascarenhas

However, Mary Azevedo cautions that not all successful founders will necessarily make good investors, as the skills required can be quite different 2.