VCs say more is to come from the tech boom - AVCJ Forum

Raymond Yang, managing partner of China and US-focused WestSummit Capital, told the AVCJ Forum in Hong Kong that he sees a growing trend of new generation companies competing with traditional businesses. For example, virtual reality technology-enabled products are replace traditional movie theaters. He expects this process to be repeated with robotics, drones and the internet-of-things.

Although there is still a gap between China and the US in terms of technology innovation, Yang said the Chinese market presents a lot of opportunities for VC investors, although there will be a shift from B2C to B2B. "Every leading Chinese entrepreneur is asking, ‘Where will I go for the next 10 years? What is my driver? What is my strategy to compete with all those bigger guys there?' The answer is very simple. Number one is innovation; number two, technology; and number three, the global market," he said.

Jenny Lee, managing partner at GGV Capital, agreed that connected devices is a particular area of interest, as investors look to create ecosystems that link to different types of hardware products, such as auto-driving vehicles.

"Technology has converged across data, software, and hardware and then into products that we can use," she said. "Is there a reason of why there has been so much investment into those spaces? Oh yes, because this is the time. If you're a good investor, you can find those category leaders. They are not only vertical leaders, but their technology will be disruptive and innovative."

Capital is expected to target consumer services, cloud computing and data collection in the mobile technology space. The driving factor is the proliferation of smart phones, with 600-700 million users in China compared to 300 million in the US. Mobile technology has been widely adopted in education, finance, real estate and transportation and it is changing consumer habits, Lee noted.

In addition to technology, media and telecom (TMT) sector, disruption will take hold in healthcare, environmental protection, food safety and education. This is largely a response to rising middle-class consumption and an aging population in China, said Andrew Chung, affiliated partner of US-based Khosla Ventures.

The AVCJ Forum is being held in Hong Kong from November 3-5. For more information, please go to www.avcjforum.com.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Venture
• Greater China
• North America
• Technology
• AVCJ Events
• China
• USA
• Technology
• TMT
• GGV Capital
• WestSummit Capital
• Khosla Ventures