Asia Startup Pulse

How to Understand Venture Capital in China with Victor Chao, Partner at SAIF

Episode Summary

What factors are RMB investors considering that USD investors are not? What can the difference between Chinese VC firms and American VC firms tell us about the innovation and entrepreneurship lanscape in these countries? As venture capital funding slows down in China, how is this affecting entrepreneurs? Today we are lucky to have the perfect person to answer these questions: Victor Chao, Partner of the RMB fund at SAIF, a leading private equity firm in China. Victor has lived and worked all over the world, and so he has a great perspective on how understanding VCs can help us understand the state of innovation in a country. 

Episode Notes

What factors are RMB investors considering that USD investors are not? What can the difference between Chinese VC firms and American VC firms tell us about the innovation and entrepreneurship lanscape in these countries? As venture capital funding slows down in China, how is this affecting entrepreneurs?

Today we are lucky to have the perfect person to answer these questions: Victor Chao, Partner of the RMB fund at SAIF, a leading private equity firm in China. Victor has lived and worked all over the world, and so he has a great perspective on how understanding VCs can help us understand the state of innovation in a country.

[1:20] Introducing Victor Chao and his journey to the VC world
[6:40] SAIF Partners history and growth
[8:11] Difference between private equity (PE) and venture capital (VC) investment strategies
[10:20] Difference between American and Chinese PE/VC investment
[14:20] What makes the China market unique: speed, mobility, and more
[16:55] Who are the investors for USD and RMB funds, and how do they impact investment strategies
[22:30] How exits and investing stages differ for USD and RMB funds
[25:15] How do different fund types influence what industries investors are looking at
[27:14] The RMB investment cooldown in China and how it is impacting investment strategies
[30:00] For a PE/VC firm, does size or performance matter more?
[32:10] How should entrepreneurs navigate today’s investment landscape
[35:40] How can entrepreneurs stand out for investment firms like SAIF

Many thanks to our host Oscar Ramos; our guest Victor Chao; editors David and Geep; producers Eva Shi and Matthew Wu; organizer Chinaccelerator; and sponsors People Squared and Himalaya. Be sure to check out our website www.chinaccelerator.com

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