Clouds might be scattering in Chinas venture capital world

News Summary

  • “Money fled, talent left, and a lot of internet bosses moved to Singapore.”Regulations is nothing new in China’s tech space as the authorities are always rushing out new legislations to rein in the reckless growth of emerging sectors.
  • And what makes Wu more hopeful about the coming year?In the past few years, China’s regulatory crackdown on its internet industry, coupled with COVID restrictions that caused great uncertainties in the economy, has drastically dampened investor confidence.
  • In web3, one of the few remaining areas in tech that were still delivering astonishing returns for VCs until the recent market crash, “there’s no perceivable future for China, for now,” Wu suggests.That’s a conclusion shared by many founders and investors.
  • “We should be looking at how many users and new developers are piling into web3 instead,” he notes.China also remains pivotal to the global development of web3 even though a domestic market doesn’t exist for the decentralized technology.
  • And instead of 10%, we are only taking 1% of its stake.”Like others who remain bullish on web3 despite the crash, Wu believes the bear market is a good time to “build” when people finally aren’t viewing crypto as a speculative asset class.
  • Many serious web3 projects have relocated offshore as a result.Despite crypto ban, China’s tech talent rides the global web3 waveDespite the exodus of talent, Wu continues to back web3 entrepreneurs originating from China.
The outlook of investing in China is suddenly brightening up as the country gradually phases out its draconian zeroCOVID policy, which has caused disruptions in businesses of all kinds and kept the [+7394 chars]