China’s tech entrepreneurial boom is already entering its second stage after only
China’s tech entrepreneurial boom is already entering its second stage after only a decade.
Fueled by the world’s largest mobile and internet markets, Chinese start-ups have developed into technology leaders in e-commerce, gaming, social networking and cloud computing. The tech giants Baidu, Alibaba and Tencent have cemented their lead in multiple market sectors, defeated western contenders in their local markets, and continue to gain power as they grab up more start-ups to house under their corporate roof.
Once copying ideas from the west and transplanting proven business models to the Middle Kingdom, founders of new businesses today in China are developing original concepts and commercializing new businesses. The copy-to-China phenomenon is dead. The scene has become much more local with fewer cues from Silicon Valley.
The story of China innovation today is micro-innovation, improving upon existing platforms and fine-tuning them for local tastes. Sina Weibo, China’s Twitter, has more features than the original from Silicon Valley, for example.
Venture investors too have become more localized in their approach to funding new enterprises in China. Today, they invest with locally hired partners in the yuan currency from yuan funds. They look to exit their investment in portfolio companies through a trade sale or listing – outside the once well-traveled paths of Nasdaq and NYSE.