Venture capitalists rethink China

Venture capitalists rethink big bets on China amid dismal IPO picture - SiliconValley.com: "Two years ago, it was one of the hottest areas in tech investing. Venture capitalists were lining up to throw money at it. But now, after disappointing IPOs, investors are fleeing. Social networking? Nope. China. In the past few years, virtually every venture shop worth its salt set up operations in the Middle Kingdom, home to one of the world's fastest-growing economies and a billion-strong consumer marketplace. Defying the decades-old maxim that venture capitalists wouldn't invest outside a 30-minute drive of Menlo Park's Sand Hill Road, firms here and elsewhere rushed to join Chinese venture houses or send homegrown partners to China. But last year, venture capitalists largely abandoned China, in large part because of underwhelming stock offerings by Chinese firms on both domestic and U.S. exchanges."


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