China: start up nation - what Australia needs to know

James Laurenceson, Deputy Director, Australia-China Relations Institute, University of Technology Sydney

3. In 2015 venture capital invested in China amounted to $US48.86bn, nearly 10 times the $5.23 billion invested in 2013.[3]

4. In 2015 venture capital invested in China was 67.5 percent of that in the US, up from 14.5 percent in 2013.[4]

5. In 2014 Beijing ranked 2^nd globally for attracting venture capital investment, following only the Bay Area of U.S.[5]

6. Beijing is home to the world’s highest valued private start-up, Xiaomi. Focusing on smart phones and mobile apps, Xiaomi was established in 2010 and is now worth more than $US45bn.[6]

7. In 2015 there were over 2,500 technology business incubators in China, up from 1,468 in 2013. There were over 80,000 technology startups under incubation, employing more than 1.8 million people.[7]

8. GGV, named the world’s second most successful venture capital firm by Forbes in 2015, has 70 percent of its portfolio allocated to China, compared with 30 percent to the US. In 2000 it had been 70 percent to the US and 30 percent to China.[8] 

9. In 2015 China-based venture capitalists were part of a $6.5 million capital raising by Australian start-up, Airtasker.[9] Former Queensland Premier, Peter Beattie says that for promoting innovation “Australian brains and Chinese money” is a match made in heaven.[10]

Author

Professor James Laurenceson, Deputy Director, Australia-China Relations Institute, University of Technology Sydney