In one of our previous posts, we discussed why Israeli startups must break into the Chinese tech ecosystem now. And it’s not for nothing. We said that by 2025, China will set up about 40 new national manufacturing innovation centers, with 15 of them being established by 2020. Each of these centers will be devoted to sectors that Israeli startups happen to dominate in.
This is a big deal for Israeli startups, and a chance worth grabbing while it’s still hot.
China is getting support from the government to foster innovation in the region. This is all in an effort to shift away from a manufacturing-centric economy towards a service and consumer-led economy. Meanwhile, VCs in China are looking for innovations. Leading innovations. Our types of innovations.
Additionally, according to KPMG, the “global investment into venture capital-backed companies hit a record high of $128.5 billion in 2015, with China deals accounting for more than one-fifth of the world total.” In the US, Chinese VC-backed startups raising $27.5 billion, representing more than two-thirds of Asia’s total deal value in 2015.”
VCs in China are showing interest across all walks on innovation, particularly the Internet sector, mobile, and telecommunications. Interest in the healthcare arena is also going up, due to the aging population there. Interesting ideas aren’t all they’re after. There are some investors who will invest in products because of their faith in the management team, and others who are looking to expose innovations to the Chinese market for pilot tests.
With all this in mind, it’s imperative for Israeli startups to break geographical barriers, and grab hold of opportunities for VC investment in China. And we are here to help along the way.