Top Tech Dealmaker Warns China’s VC Winter Is Far From Over
- Country’s tech crackdown has spooked funders and investors
- Bao Fan remains optimistic about China’s long-term future
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Chinese startups will struggle to attract investment throughout 2022 and possibly beyond, one of the country’s most successful dealmakers said, adding to a chorus of warnings about a reckoning for global tech firms after years of easy money.
Investors in private equity and venture capital funds, known as limited partners, are becoming a lot more selective before committing capital, Bao Fan, founder of China Renaissance Holdings, told Bloomberg News in Hong Kong. The industry may be witnessing the start of a longer-term shift in the geography and type of investor, as American and risk-averse backers begin to cool on China, he said in an interview.