As China’s market grows, internet giants Baidu, Alibaba and Tencent have put out feelers in virtually every tech vertical, making it difficult for newcomers and VCs to crack into existing online markets.

According to Zhu Xiaohu, managing partner at GSR Ventures, targeting offline businesses is the best way to avoid competition from BAT. Zhu spoke on a panel at Techrunch Shanghai this Monday, alongside Zhang Xuhao, founder of online food delivery company Ele.me.com, one of GSR’s early investments.

“Chinese venture capitalists have to cooperate with BAT, because they are taking a dominant part of China’s internet market. But we choose to do venture capital investment in China differently by cooperating with startups that have a more extensive offline presence, where the BAT’s influences are weaker.”

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.