Recent Blog Posts
-
Facebook Faces Short Wall Street Honeymoon
May 21 201210:54 am EDT -
Who Loses From Tepid Facebook Offering?
May 18 20122:57 pm EDT -
Rich VCs Get Richer
May 18 201210:25 am EDT -
Hey, Facebook: No Pop for You
May 18 20128:29 am EDT -
Facebook IPO Is On
May 17 20125:12 pm EDT -
A $1.5B Valuation Sticks on Pinterest
May 17 20129:49 am EDT -
Facebook IPO Size Balloons—Again
May 16 20129:52 am EDT -
Facebook Wants Into the 12-Figure Club
May 15 20129:37 am EDT -
Do You Have a Praiseworthy Credit Card?
May 14 20121:06 pm EDT -
New Breed of Company Buyers Emerge
May 14 201210:42 am EDT
Where's The Next Great Investment? China
Wondering where that venture capital money went, the kind that didn't get put into American companies? Apparently, at least some of it went to China.
Venture capital investment in that country jumped 84 percent in the third quarter to $1.3 billion, and is on pace to set an annual record, according to a new survey out today by Dow Jones VentureSource. All told, 89 deals to companies in China got funding, a 19 percent increase compared with the same period in 2010. That increase is compared with the 12 percent drop in funding in the United States (But for comparison's sake, $7 billion worth of deals were funded domestically, versus the $1.3 billion in China.)
The Dow Jones survey doesn't break out the venture firms investing, but it's fair to say plenty of American venture capitalists are involved in boosting the deal flow.
For example, Silicon Valley-based venture firm Accel closed two new funds in China totaling $1.3 billion this Spring, according to a Forbes report from April. It took Accel, which had a Chinese partner, International Data Group, less than eight weeks to raise the money. Matrix Partners and Sequoia Capital also based in the valley, just completed rounds of Chinese fund-raising as well.
And lest you think it's a technology bubble driving Chinese growth, think again. It's everything, according to Forbes. And that includes hotels, sports products, and fast food.
Get more business intelligence from Portfolio.com:
- Startups Make Hot Area for Banks: As the tech industry booms, banks are making more loans, startups are taking on more debt, and everyone wants a piece of the action.
- Lacing Up Against the Big Guys: Victoria’s Secret has long been the big, busty madame of the lingerie business, but make way for independent Journelle, which takes the concept upscale in a challenging market.
- Google's Big Acquisition Spree: The company has dropped $1.4 billion on acquiring 57 companies so far this year, beating its previous record.
Kirsten Grind covers venture capital, private equity and money matters for Portfolio.com.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
