, Columnist
China's Smart Money Burrows Into Silicon Valley
It makes sense to have exposure to the world's original innovation hub.
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It seems counterintuitive that a more pedestrian tech market like the U.S. should be drawing funds from China, where the scene is vibrant and growing at a rapid clip. Even more so when there are still buckets of money in the world's largest economy waiting to be deployed.
A demand-side model would suggest that when startups need cash to expand, they tap whatever funds they can, and with liquidity close by, there's no reason that shouldn't come from North America. But currently, it seems the supply side is dictating things, and Chinese money has the loudest voice in the trading pit.