Virtual reality is one of the hottest trends in the Chinese tech market, as proximity to manufacturing and abundant local capital have seen a splurge in VR investments. But according to Cai Wensheng, a well-known angel investor in China, 2016 may not be the year that virtual reality takes off.

“In 2000, during the dot-com bubble, everyone thought the internet could change everything. But when it all crashed, we found out it was all a lie,” said Mr. Cai, drawing a comparison to the recent hype around virtual reality during a panel event at this year’s Asia Beat conference in Xiamen.

Entrepreneurs can start entering the virtual reality industry, but should manage their expectations, he said. However, despite his caution toward virtual reality, Mr. Cai has invested in VR startups as he would rather “make the wrong investment, than miss an opportunity.”

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Eva Xiao

Eva Xiao is a tech reporter based in Shanghai. Contact her at eva.xiao@technode.com or evawxiao (wechat & twitter).