Ken Xu, partner of Gobi Partners, a Chinese early stage venture capital, recently shared his thoughts on Chinese startup and investment fields with local media PEDaily, we did an excerpt of the interview here to give you more sense about the Chinese startup and VC world from an investor’s perspective.

On Investments in this year

When speaking of the inactivity in investment market this year, Ken noted that dollar funds this year wasn’t as active as RMB funds for several reasons. Firstly, in China dollar-investments still involve very complex administrative procedures and require approval from the authorities. Sometimes it takes a whole year to get one investment case approved. Secondly, small projects are far enough from attracting dollar funds. For example, you probably won’t see too many US$ 2-4M investment out there in the market. Thirdly, since last year, investors have been swarmed into too limited fields, e-commerce for last year and mobile for this year, for instance. “But in the short term, we are still unsure about their business model except for some game companies. ”

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Charlie Sheng

动点科技驻湾区记者. Charlie is an entrepreneur based in San Francisco and Hong Kong who calls herself the undefeated caffeine champion. You can reach her at charlie.sheng (at) technode.com