Business.com journalist John Rampton wrote an article on how to start working with investors from China.

Eurasia Development presents a translation of the article. The original can be found here.

You do not have to look far to find Chinese venture firms or incubators, because they are already operating in regions where startups are actively developing.

According to CB Insights, “Between 2007 and 2013, investors from China and Taiwan participated in more than 150 deals totaling USD 2.6 billion.”

There are many reasons to work with Chinese venture firms, including the amount of capital available for investment in technology companies, their willingness to cooperate to develop global opportunities in both countries, and their ability to help startups overcome the challenges faced by a growing company: scaling production and valuation.

Here are several ways to start working with Chinese venture firms:
1. Business Incubators and Idea Labs
In cities near you, there are business incubators and labs where Chinese investors work directly with their portfolio companies.

For example, Northern California offers many opportunities to establish cooperation with Chinese venture firms behind business incubators and idea labs. In San Jose, there is a technology business incubator called Hanhai zPark. A startup incubator specializing in biotechnology also operates in South San Francisco.

Most residents of such incubators are Chinese companies planning to enter the US market. However, local companies can also obtain the assistance they need to do business in China. Similar opportunities exist in other cities, including Boston.

2. Local Partners
Chinese investors establish representative offices not only to hold meetings, exchange ideas and discuss investment projects, but also as a gateway to Chinese investment and partners.

For example, the China Center is the first platform of its kind where leaders from China and the United States come together to discuss existing opportunities.

In March 2015, an academic paper based on a roundtable at the University of California, Berkeley, on international economics was published. Researchers from China and the United States examined the specifics and duration of cooperation between companies and Chinese investors.

The study showed that entrepreneurs are interested in working with Chinese venture firms at later stages, when the company has become more mature.
The likelihood of such cooperation is low at the seed stage, when uncertainty is at its highest.

If a local firm, whether from the United States or another country, has experience working with China, it will be easier for it to establish cooperation with Chinese venture capitalists and obtain investment at an earlier stage of development.

3. International Connections
According to a 2012 article in China Business Review, China’s venture capital market is growing and developing rapidly, creating opportunities for young startups.

The article emphasizes that the focus of venture investment has shifted from infrastructure projects to innovation in science, technology, consumer goods and services. Foreign companies have also been able to ride this new wave of investment.

Many Chinese venture firms have an online presence, making them easier to access given their willingness to invest in foreign companies.

4. Joint Projects
Some venture firms, such as Haiyin Capital, invite selected technology startups to participate in joint projects. The firm intends to invest around USD 50 million in American technology companies.

Some portfolio companies of Hayin Capital were invited to visit several industrial regions of China and participate in events for entrepreneurs to exchange experience.

Many entrepreneurs benefit from working with Chinese partners because they can provide assistance with bringing products to market, scaling, expanding the customer base, finding manufacturing partners, and increasing the project’s valuation as a promising startup.

In Conclusion
Cooperation with Chinese venture firms is still in its infancy. Entrepreneurs will have to overcome many barriers and obstacles to gain access to financing.

However, the benefits that technological cooperation, manufacturing capabilities and innovation offer to representatives of both sides cannot be denied.