China VC trend is changing
- As China's consumer internet boom comes to an end, investors are flocking to other categories for red-hot growth. And unlike the consumer boom of the last decade, these areas are highly strategic to China's national interest.
- There're three categories of VCs here: U.S.-dollar VC fund, they declined the most from $3.1 billion in 2019 to just $111 million this year; Funds backed by domestic Chinese money ramped up their investment in area that the government characterized as highly strategic; lastly, Chinese VC firms that raised U.S.-dollars from foreign investors also focused on areas supported by the government's policy priorities, for example technologies that improve manufacturing and supply chain.
- When China's consumer internet market was booming, major VC firms invested in numerous apps to make sure they wouldn't miss the winter - "spray and pray" tactics. But that approach doesn't work with enterprise tech startups, who growth and returns are unlikely to be as dramatic as those of consumer apps.
- In this report, we dive into Stripe’s unique strategy, growth trajectory, product set, and where the $36B payments (then, when the article was published in Feb. 2021) giant sees the global online commerce market heading next.
- To help enable online commerce, Stripe is building a suite of APIs that allow developers to implement its payment capabilities. These APIs handle everything from acceptance and processing to settlement and reconciliation, while ensuring compliance and security.
- Every investor wants to know whether central banks are prepared to cause a recession in order to force inflation down. Surely, officials are bluffing, right? But think about it from the central banker’s perspective.
- The authorities are prepared to suffer a recession now because they fear a much worse recession in the future if price stability is lost. The trade-off, as officials see it, is intertemporal.
