What tech investors are looking for in China

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After two years of struggling to raise money, Chinese start-ups are seeing renewed interest from venture capitalists as the US boom crosses the Pacific Ocean.

“Winter in the capital is over and competition for trade is fierce,” said Minryao of Prospect Avenue Capital. “To start trading now, you need to bring more than cash to the table.”

According to data provider ITjuzi, the number of venture transactions in China increased 56% year-on-year in the first quarter as start-ups attracted RMB 354 billion ($ 55 billion) investment.

A vibrant public market and a large amount of foreign currency helped. The most active investor, Tencent, has made some profits as the value of its listed investment portfolio tripled last year. VC companies such as GGV Capital, Qiming Venture Partners and Matrix Partners China have raised large amounts of new funding.

In some respects, investing in China and the United States is similar. Both markets are large enough…

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