In­ter­net con­ver­gence to boost in­vest­ment op­tions

China Daily (Canada) - - CHINA - By SHIJINGinWuzhen, Zhe­jiang shi­jing@chi­nadaily.com.cn

In­vest­ment and en­tre­pre­neur­ial op­por­tu­ni­ties cen­tered on In­ter­net con­ver­gence in sec­tors like health­care, ed­u­ca­tion, and global trade will grow man­i­fold dur­ing the next decade, a lead­ing ven­ture cap­i­tal­ist said.

JimBreyer, the founder and chief ex­ec­u­tive of Breyer Cap­i­tal, a United States-based ven­ture cap­i­tal firm, said that many com­pa­nies are in­vest­ing in or are fo­cused on ar­ti­fi­cial in­tel­li­gence. “It is an ex­traor­di­nar­ily pow­er­ful thing when it is an en­abler and not a dis­placer,” he said.

In Oc­to­ber, Breyer Cap­i­tal in­vested in a health­care startup, which is us­ing an­a­lyt­ics and big data to im­prove pa­tient ex­pe­ri­ences, and how doc­tors and pa­tients can work to­gether. It is an ex­am­ple of the in­ter­sec­tion of health­care an­a­lyt­ics, data an­a­lyt­ics and new tech­nolo­gies to im­prove health­care out­comes, he said.

Brey­er­has­in­veste­di­nover30 com­pa­nies that have gone pub­lic or com­pleted a merger, in­clud­ing the well-known so­cial net­work ser­vice provider Face­book, and on­line hand­made and vin­tage mar­ket­place Etsy.

In2005, Breyer helped­forma joint ven­ture be­tween Ac­cel Part­ners and IDG Cap­i­tal Part­ners, a lead­ing Chi­nese in­vest­ment­com­pany. IDGis cur­rently lead by well-known in­vestor Hugo Shong. Breyer has served as a co-lead on the Ac­cel-IDG joint ven­ture’s strate­gic in­vest­ment com­mit­tee since 2005.

To­gether with IDG, Breyer Cap­i­tal is jointly work­ing on com­pa­nies that are both in China and the US.

“Weare big be­liev­ers in cross­bor­der in­vest­ment. You will see more cross-border in­vest­ment over the next year in com­pa­nies such as tech­nol­ogy and how it helps and en­ables next gen­er­a­tion of health­care,” he said.

An ex­am­ple would be Cir­cle In­ter­net, a com­pany which Breyer Cap­i­tal pro­vided se­ries A fund­ing in 2013. It’s a dig­i­tal pay­ment in­fra­struc­ture com­pany which is now start­ing to hire and build a team in­China. IDG China in­vested in Cir­cle in­March.

Speak­ing about the mass en­trepreneur­ship trend in China, Breyer said he is con­fi­dent about young en­trepreneurs if they are pas­sion­ate, truly in­ter­ested in star­tups and can cre­ate in­no­va­tive and en­tre­pre­neur­ial ven­tures.

But he said that there are also risks like some late-stage pri­vate com­pa­nies which are rais­ing a great deal of money and spend­ing it too.

“I’m ex­tremely ex­cited about the level of en­cour­age­ment in China for in­no­va­tion and en­trepreneur­ship. I view it as an ex­tremely pos­i­tive en­abler for ven­ture cap­i­tal in­vest­ment,” he said.

But Breyer stressed that there are not enough in­cu­ba­tors in China to help the star­tups. He thinks China needs sig­nif­i­cantly more early-stage ven­ture cap­i­tal in­cu­ba­tion help not only for cap­i­tal re­quire­ments, but also for hir­ing top tal­ent and thought lead­er­ship.

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