Fate of US venture capital in China teeters on uncertainty
Tech crackdown in China and US scrutiny drive some of these VCs to
look abroad
...
...
Since their entry into China in the late 1990s, American venture
capital firms, led by powerhouses like Sequoia Capital, IDG Capital
and GGV, have played a major role in funding high-risk, high-reward
startups in the country's consumer internet sector. This
two-decade-long mutually beneficial relationship, however, now hangs
in the balance as changes at home and abroad diminish the pool of
investment opportunities for outside financiers.
In recent years, Beijing's sweeping tech crackdowns have introduced a
new sense of uncertainty to investors. VCs fear that their portfolio
companies might encounter a fate akin to that of Ant Group, whose
colossal initial public offering was called off, and Didi, which
weathered an extensive data security probe that eventually led to its
delisting from New York. With China tightening its grip on overseas
IPOs, investors who once relied on taking Chinese firms public in the
U.S. are no longer assured of an exit channel.
https://techcrunch.com/2023/11/25/fate-of-us-venture-capital-in-china/
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