China breaks record for investment in US technology

05/12/2013
Diego Gutiérrez
China breaks record for investment in US technology
Emerging countries, led by China and India, are increasingly investing in developed country companies. During 2013 China has invested $855M in 36 operations of investment. Acquiring cutting-edge technologies to apply in their home markets is one of the reasons why Chinese investors are acquiring technology startups in the US.

 

Growing investment by emerging countries in developed countries

In the last 5 years the flow of capital from emerging countries to developed countries is greater than in the opposite direction according to a EdTech sector study from Pwc. American technology startups are no exception, from Alibaba, REnRen, Tencent etc., Chinese investors are stepping up the pace of investment. From 2007 to today, Chinese and Taiwanese investors have completed 156 deals totalling $2.6Bn and in 2013 it has reached its peak.

Alibaba and Tencent: the most active corporations

According to information from CBinsights, The most recent and largest operations include the investment of Tencent in Fab.com for $150M in Series D in June, that of Alibaba in Quixey by $50M in Series C and the investment of the Hong Kong-based Shining Capital Management in JustFab by $40M.

«La tendencia de la investment China's investment in US technology appears to have a way to go. Alibaba has created an investment vehicle exclusively to invest in the US market and Tencent still maintains interest in seed deals through the round One of the main arguments of Chinese investors to their new investees is entry into Asian markets, as proposed by the incubator Formation8″ comments Diego Gutierrez, an expert in alternative financing in Abra Invest.

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