Inside China's Historic $338 Billion Tech Startup Experiment
- Money represents world's biggest startup pool, Preqin says
- Huge influx could lead to corruption, boom and bust cycle
Workers use computers at their desks inside Tech Temple, a co-working space for start-up companies, in Beijing.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
China is getting into the venture capital business in a big way. A really, really big way.
The country’s government-backed venture funds raised about 1.5 trillion yuan ($231 billion) in 2015, tripling the amount under management in a single year to 2.2 trillion yuan, according to data compiled by the consultancy Zero2IPO Group. That’s the biggest pot of money for startups in the world and almost five times the sum raised by other venture firms last year globally, according to London-based consultancy Preqin Ltd.