Graphic: The rise of Chinese venture capital

No Apple angle here, just an amazing graphic courtesy of the Wall Street Journal ($).

From Phred Dvorak and Yasufumi Saito’s Silicon Valley Powered American Tech Dominance—Now It Has a Challenger:

A decade ago, nearly three-quarters of the world’s financing of innovative, tech-heavy startups and young companies took place in the U.S., with American investors plowing money into mostly U.S.-based venture firms.

Now, a surge of new money—mostly from China—has helped drive funding totals into the stratosphere and has transformed the venture landscape, according to an exclusive Wall Street Journal analysis of venture funding data…

That tidal wave of cash into promising young firms could herald a shift in who controls the world’s technological innovation and its economic fruits, from artificial intelligence to self-driving cars.

Below: a version you can click to enlarge.

Chinese venture capital

My take: The elephant in the room—the last tech bubble—is not addressed in the accompanying article.

UPDATE: Where the money goes, per friend-of-the-blog Dave Emery’s request.

10 Comments

  1. David Emery said:

    It would be interesting to see a similar graph on “destination”. There’s an implication that ‘origin = destination’, but that’s something worth verifying.

    1
    April 14, 2018
  2. Ken Cheng said:

    I’d be more concerned if I were European. They’ve gone from 2nd in VC investment as recently as 2013 to 5th.

    1
    April 14, 2018
    • David Drinkwater said:

      In many ways, Europe now has bigger problems than that, because, while Europe was “One” before Brexit, I don’t know that one European will now see his or her investment in another European as an investment in “Europe”.

      It’s a shame in my not so humble opinion.

      2
      April 14, 2018
  3. David Drinkwater said:

    I wonder if Japan’s balance of “venture capital” isn’t made to seem smaller by their keiretsu structures. Those may not get counted as “venture” capital, because it is investment in “self”, and not “nation” or “others” (i.e. ventures). That would require better understanding the definition of terms.

    1
    April 14, 2018
  4. Ken Cheng said:

    I actually like the chart, but since it’s the first time I’ve seen one in that style, it took me some time to understand it. It’s not good for discerning nominal values, but better for seeing trends.

    0
    April 14, 2018

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