AI and VR are too popular with Chinese capital

A recent report from the Pentagon warned that China’s investment in U.S. technology startups, especially those that can be deployed on military equipment, may make China’s strategic advantage over that of the United States.

Despite these concerns, although China’s investment in U.S. technology companies has indeed increased in the past few years, it is still far from dominance, and it is probably already at its peak.

The exact amount of Chinese business ventures in the United States is difficult to pursue. Although many of the funds flowing to private companies are already publicly available, either by the Securities and Exchange Commission or through news reports, the specific number of individual companies' financing in each round is still difficult to grasp.

However, CB Insights' data still gives us an idea of ​​the total size of the two rounds of financing that Chinese companies are involved in.

US Technology Startups Total Financing

Funds including Chinese investors

Source: CB Insights | Note: Including Taiwan and Hong Kong

From the above chart, it is not difficult to see that 2015 is a year in which U.S. technology start-up companies attract funds. The total size of financing has reached a peak, especially attracting a lot of funds from Chinese companies. In that year, Chinese companies participated in the financing of U.S. science and technology start-ups totaling US$10 billion, which accounted for one-fifth of the total U.S. start-up companies raised in that year, more than three times more than in the previous year. In 2015, financing with a scale of more than one billion U.S. dollars was invested by Sorghum Capital in Airbnb, everyone in SOFI investment, and Baidu and Gaochun Capital in Uber investment. These investments also increased the total funds raised by U.S. technology startups.

However, in the past two years, the financing hotlines of U.S. technology start-up companies have been declining. From the known 2016 annual data, some of the reasons may be attributed to the reduction in the amount of Chinese enterprises’ investment in the U.S. and the reduction in the amount of financing involved in the U.S. 50%. Moreover, judging from the data for the first quarter of 2017, the total amount of financing this year and the proportion of Chinese companies will also decline.

The proportion of Chinese companies investing in U.S. technology startups

Based on total financing

Source: CB Insights | Note: Including Taiwan and Hong Kong

In 2015, when the total scale of US financing reached a peak, China’s investment in U.S. start-up companies also reached a peak, accounting for an increase from 5.49% in the previous year to 18.37%. In the past two years, it gradually “cooled down”, accounting for 12% of the total investment. Up and down, although not comparable to the peak of 2015, it still maintains a large share.

Let us review the Pentagon’s remarks: Even if we have the exact amount of investment, it is not clear which start-up companies will be concerned by the military. The following companies that recently received Chinese investment may have the potential to develop military and consumer applications:

· Neurala (Chinese investors participated in its latest round of financing: $1.2 million) to produce more intelligent scientific engineering software that can make military robots.

· Lytro (financed US$60 million), whose camera technology records three-dimensional information that can be used in virtual reality and belongs to consumer electronics.

Velodyne (150 million U.S. dollars), a self-driving automotive sensor company that is funded by Baidu Capital, belongs to the electronics field.

There is also a special development area: China's investment in AI and VR start-up companies have both consumer and military potential.

China's investment growth in AI and VR startups

Funds including Chinese investors

Source: CB Insights | Note: Including Taiwan and Hong Kong

In recent years, research in both areas of AI and VR has been very hot. In 2015, Chinese investors’ investment in these two areas can be said to have risen linearly, especially VR. In 2013, Chinese companies began to inject capital in this area. By 2015, they had risen to 1.3 billion+, and AI has also increased two. Times.

Sewing Machine Servo Motor

Sewing Machine Servo Motor,Dorna Servo Motor,Industrial Motor,Brushless Sewing Machine Motor

LISHUI SHUANGZHENG MOTOR CO.,LTD. , https://www.szservomotor.com

Posted on