Saturday, April 25, 2020

10 Key Takeaways from 'Ask A VC': Gary Rieschel, Qiming Venture

Silicon Dragon's 4th 'Ask A VC Anything' featured Gary Rieschel, founding managing partner of Qiming Venture, one of the most established and dominant US-China VC firms. Rieschel is a thought leader in the venture business and manages to stay ahead of the trends with a long-term perspective.  
Here's 10 key takeaways from host Rebecca Fannin's conversation with Gary at Silicon Global Online Series
Ask A VC Anything.

1. Innovation will enter a hyperactive period that will last well into a decade as a result of the Covid-19 virus speeding up changes in lifestyles and norms

2. VC fund raising will become exceedingly difficult as limited partners that are already over-allocated in this asset class become more selective

3. VC investing in tech will be more selective as China faces its first downturn ever since Chinese venture took root nearly two decades ago 

4. China tech investing into the U.S. is dead, a victim of politics

5. Stricter financial disclosure requirements for Chinese companies listing in the US could come into play in the wake of alleged fraud at China's Luckin Coffee

6. Fair competition between the US and China over tech dominance is healthy, but both country's governments are too involved

7. New rules of the road will need to be developed for the use of AI, regarding such issues as patient data protection, which is more freely shared in China than in the US

8. Tech markets are moving away from a focus on the consumer internet to product solutions plus data

9. Sectors that will be hurt the most in this coronavirus crisis include commercial real estate and the shared economy such as co-working while those that will benefit include online education and pharmaceutical

10. US-China relations are at a low point politically but putting moats around tech with dual standards and decoupling of US and China markets won't work since technology likes to move, to flow 

Highlights of Gary's career

• Co-founded or sponsored 4 China VC firms and helped to jumpstart China venture investing
• 30 years experience as a venture investor working in Silicon Valley, Japan, Shanghai and now Seattle
• Co-founded Qiming Venture in 2006, which now manages $5.3 billion with nine US $ funds and four RMB funds
• Despite challenging times, recently raised a new $1.1 billion fund focused on healthcare and tech investing  
• Returned to the US in 2016 and launched the firm's 1st US fund investing in healthcare, and raised a second fund to total $300 million in capital

On-demand recording

An on-demand recording of Silicon Dragon Online with Gary Rieschel is available through the end of April 2020. Payment of $20 goes to Silicon Dragon account on PayPal,