Monday, May 30, 2011

Silicon Dragon Beijing 2011: "It's Great To Have A Bubble"

Is there a bubble in China venture investing? Sure. And who could be more upbeat about it than the leading venture capitalists in Beijing and Shanghai.

“It’s great to have a bubble,” said Sonny Wu, managing director, GSR Ventures. “Bubbles are great,” agreed Richard Hsu, managing director, Intel Capital China.

What the heck?

The seasoned venture investors who spoke at Silicon Dragon Beijing 2011 have survived dotcom meltdowns and market crashes in China and Silicon Valley before. They can spot the signs of an overheated market quite well, thank you. And they intend to score in this very hot market before the opportunities are gone.

“We’re in the midst of a bubble but a good bubble. It’s going to create a flight to quality,” added DCM general partner Ruby Lu. “The bad companies will lose momentum or die. The market will shrink to a small base of companies. (Beware, 1,000 GroupOn clones in China.) See Silicon Dragon Video of Beijing show.

What are some tactics that astute investors are trying to ride the roller coaster of this highly cyclical business?
Read more at Forbes: