U.S. venture capital investors in new energy technologies are beginning to groom their portfolio companies for increased business in China, given favorable government policies and more availability of capital.

U.S. venture capital investors in new energy technologies are beginning to groom their portfolio companies for increased business in China, given favorable government policies and more availability of capital.

Many U.S. clean technology companies already rely on Chinese manufacturers for their component parts. Now, investors said, U.S. companies are turning to China for capital as well.

“The funding crunch in the U.S. is really severe,” said Jiang Xiaodong, a managing director with New Enterprise Associates and head of the firm’s operations in China. “And a lot of the Chinese companies that are listed on the SME [board of the Shenzhen Stock Exchange] exchange and on ChiNext raised a lot of money and now they want to spend it in a way that gives them access to technology and future growth opportunities.”

To read the full, original article click on this link: Clean-Tech Investors Lean On China For Capital, Policy Support - Venture Capital Dispatch - WSJ

Author: Jonathan Shieber