Tech newbies give China’s business environment the thumbs up
A RESOUNDING majority of tech startups in China have given an optimistic view on the nation’s macroeconomic environment, a recent report revealed.
According to Asia Times (via the China News Service), the report published by the country’s first technology bank, SPD Silicon Valley Bank, found that at least 80 percent of the startups in the country have a positive outlook on the nation’s business environment.
The government’s concern for the innovative economy and iterative growth of the country’s consumer groups, the 2018 study shows, were the main reasons why companies in innovative sectors are showing approval for the commercial ecosystem.
Data from Alibaba Cloud had previously shown that at least seven startups are created every minute but financing and recruiting were still considered to be the two main hurdles for the country.
Eighty-eight percent of technopreneurs found it hard to raise money, while 35 percent said they obtained funding through venture capital, and 20 percent said sourced money from private placements.
Apart from difficulties in obtaining funds, 66 percent of the entrepreneurs said they faced challenges recruiting talent fit for their vacancies.
Overall, startups and tech giants in China raked in a record US$58.8 billion from investors last year – an increase of more than US$2 billion from 2016.
This surge in investments in 2017 came despite fewer funding rounds than previous years, which resulted in a record-breaking average round of US$33.6 million each time.
Last year the Chinese government launched a series of new venture funds to boost China’s tech startup ecosystem.
These firms, called “government guidance funds” are built specifically to dole out public investment to help local companies become more competitive in the international market.
Just last week, the state-owned China Aerospace Science and Technology Corporation announced a US$22 billion fund to invest in new technologies.
- China-made mobile phones gaining popularity in Russia
- The resurgence of Covid-19 in China did not drag its cloud spending down
- Ant Group launches digital bank in Singapore, its first outside of China
- China’s Geely launches first batch of LEO satellites for autonomous vehicles
- The West’s fears on China’s digital yuan escalates with a ban