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Top investor says excessive state support to select sectors may limit VC play in China


Top investor says excessive state support to select sectors may limit VC play in China
Jeffrey Lee, co-founder and managing director at Northern Light Venture Capital (NLVC)
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As China’s venture capital market continues its rapid growth riding on Beijing’s endeavours to achieve technological self-reliance, an investment veteran said that excessive government funding could squeeze room for venture investors looking to cash in on the country’s technology advancements.
“Broad [government] support has been the most valuable gift that we’ve received as investors,” Jeffrey Lee, co-founder and managing director at Northern Light Venture Capital (NLVC), told DealStreetAsia in an online interview. “Where we found regret, as sometimes bad side effects, is when a regional- or local-level government overly promotes specific industries by giving too much capital.” ....

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