China blazes a trail to Startup Nation
New names have climbed to the top of the global technology industry. Luminaries like Microsoft, Intel and Motorola – along with younger names such as Google and Facebook – have been joined by the likes of China’s Alibaba, Baidu, Huawei and Xiaomi. Indeed, China’s tech champions have made their presence known on Wall Street as much as they have in Silicon Valley, based on the tremendous economic potential of their home country.
And as they roam the world in search of technology to lead keep them ahead of rivals in the ever-in-flux high-tech market, China’s giants are following the path cleared by their Silicon Valley peers to Israel.
Chinese tech companies have been sniffing around Startup Nation for some time, but in recent months they have moved into a new phase: Since 2012, some 30 Chinese investors have entered the Israeli high-tech scene and put money into over 80 startups, says IVC Research Center, which tracks Israeli venture capital and high-tech. In 2014 alone, 22 investors from China and Hong Kong participated in 30 financing rounds by Israeli startups totaling some $300 million. In recent years the number of Chinese investors who put their money directly into Israeli startups has been growing by 50% annually.
In 2012 only one Israeli venture capital fund raised money from Chinese investors, but just two years later the number reached seven, and five months into 2015 it has already hit 11, according to IVC, which declines to provide specific money figures. At the current pace of investments, IVC expects the number of Chinese investors in Israeli companies to reach 28, and the number of investments will grow too. This compares to only 10 Chinese investors here in 22 direct investments in Israeli startups in 2012.
Following the U.S. lead
Just like the big U.S. technology multinationals a decade or more ago, Chinese companies are buying out Israeli startups and establishing research and development centers in Israel.
http://www.haaretz.com/business/.premium-1.661515
