China, Finances and Tech

[Arthur Hanson]

Right now Silicon Valley not only has the culture, but a very sophisticated financial structure that China doesn't have. This extends from angel investors, corporate venture capital arms, straight venture capitalists, crowd funding and many ultra wealthy technologists across the whole range of tech (Oracle, Facebook, Google, Apple, etc.) all backed up by a very active private and public market in shares pre and post IPO. Another area of financing we have on a scale no other country has is for Moon Shot projects on a very large scale in both quantity and resources committed. This is our huge competitive edge where China is still in it's infancy. China will catch up fast, but is still ten years behind us and we are a fast moving target by developing new finance and business models to extend, promote and utilize our technology. We will also see China make large mistakes, like allowing people to massively over leveraging their assets to accumulate shares, leading to the crash we have just seen. Comments and additions wanted and welcome for I have probably missed a few things under the horizon.

 

[steventang1955]

Right now Silicon Valley not only has the culture, but a very sophisticated financial structure that China doesn't have. This extends from angel investors, corporate venture capital arms, straight venture capitalists, crowd funding and many ultra wealthy technologists across the whole range of tech (Oracle, Facebook, Google, Apple, etc.) all backed up by a very active private and public market in shares pre and post IPO. Another area of financing we have on a scale no other country has is for Moon Shot projects on a very large scale in both quantity and resources committed. This is our huge competitive edge where China is still in it's infancy. China will catch up fast, but is still ten years behind us and we are a fast moving target by developing new finance and business models to extend, promote and utilize our technology. We will also see China make large mistakes, like allowing people to massively over leveraging their assets to accumulate shares, leading to the crash we have just seen. Comments and additions wanted and welcome for I have probably missed a few things under the horizon.

History taught us well that when a country invest too hurrily it makes major mistake, we have seen large deals went through and mega deals brewing in the near terms. However, we are in one industry whether it is in US, Europe or Asia (Japan, Singapore, China), if there is more capital flowing into the system, it will provide more funding for us to develop the industry. For the next 50 years, US will lead because of innovation and ability to create. There is no threats but I look for more cooperation to turn this capital stream into useful assets for all in the industry.