China's Effect on the U.S. VC GameA VC pro explains the benefits and drawback of finding funding overseas.
BySam Hogg•
This story appears in theJuly 2015issue of狗万官方.Subscribe »
A major macroeconomic tipping point occurred in 2014:The New York Timesreported that Chinese investment in the U.S. had surpassed U.S. investment in China. The investment in this case is general, not just venture capital. However, in my VC world, it has become increasingly common to see tech startups score financial backing from groups in China.
I view this as a double-edged sword. On one hand, money is the lifeblood of a startup, and fundraising traction in any form is crucial. On the other hand, if a business needs to go across the ocean to nab these funds, it leaves me wondering why.