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China's entrepreneurial accelerator enters Silicon Valley and wants to bring premium start-up companies back to China

via:CnBeta     time:2018/5/18 9:31:17     readed:395

Zhongguancun Silicon Valley Innovation Center

Some of these accelerators work directly with the Chinese government and are funded by the latter. Reuters interviews show that many of these accelerators have focused on bringing American startups to China.

Right now, China’s influence in the high-tech field has been increasing, causing some U.S. officials’ concerns. They worry that U.S. technology will be transferred to China through investments, joint ventures or licensing agreements.

"intellectual property is the future of our economy and security," U.S. Senator Mark Warnertold Reuters.

Of course, the Chinese entrepreneurial accelerator is only a small part of many incubators in Silicon Valley. According to Crunchbase data, there are as many as 159 accelerators and 70 incubators of various types throughout the San Francisco Bay Area.

However, accelerators reflect the close relationship between Chinese and American entrepreneurs, technology investors, and top engineering talent.

For example, American universities are still the main training base for Chinese engineers.MicrosoftOther US companies have long-term research laboratories in China.

Some executives of China’s entrepreneurial accelerators told Reuters that their goal is to help US start-ups enter the Chinese market and cultivate the relationship between entrepreneurs and investors in the two countries.

“We are building the door or bridge to the Chinese market,” said Wei Luo, chief operating officer of Zhongguancun Capital Group. The company operates the Zhongguancun Silicon Valley Innovation Center in Silicon Valley.

The Zhongguancun Silicon Valley Innovation Center was supported by the Zhongguancun Development Group. It was named after Zhongguancun in Beijing and is sometimes referred to as China’s Silicon Valley.

Luo Wei said that an accelerator like the Zhongguancun Silicon Valley Innovation Center can help US entrepreneurs better understand China.

Other Silicon Valley accelerators that help US start-ups enter China include Plug and Play, InnoSpring and Shanghai Lingang Overseas Innovation Center. Plug and Play is not China's entrepreneurial accelerator, but it cooperates with several local governments in China; InnoSpring's investors include Lenovo Capital's Legend Capital; Shanghai Lingang Overseas Innovation Center is related to the Shanghai government.

In terms of business, Janet, which InnoSpring invested in, has raised more than 100 million U.S. dollars. Another Chinese startup incubator, Amino Capital, holds shares in the health data company Human Longevity, which has raised more than $300 million.

Like local governments in the United States, many local governments in China are eager to provide support for startup companies to promote economic development.

The accelerator company in China covers many fields including artificial intelligence, autopilot technology, big data and health sciences. They often help US companies set up joint ventures or enter into licensing agreements to enter China.

According to the Shanghai government, Shanghai Lingang Overseas Innovation Center will act as a broker for technology transfer to serve startup companies.

In Silicon Valley, there have been no well-known cases in which Chinese accelerators helped steal technology from U.S. startups.

InnoSpring Silicon Valley, a Shanghai-based accelerator, has invested $3.5 billion in 70 US startups and 15 Chinese startups over the past five years. Its co-founder Xiao Wang (transliteration) said that those who think that entering the Chinese market will have to pay the price of intellectual property theft "needs a better understanding of China."

She said that while China's protection of intellectual property is not as good as that of the United States, it has improved. She said that compared to risks, the benefits of U.S. startups entering China are much greater, including China's huge market, more and more talents, and so on.

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