The stillness in innovation is one of the main forces after a recent thrust in VC (venture capital) investment in Chinese tech firms, as per to financiers who spoke to CNBC. The worth of VC speculation in China was $9.7 Billion in the second quarter of 2019, as per to financial data firm Preqin. This was less by almost 77% from the $41.3 Billion invested simultaneously in the same period in last year. Apparently, China has seeded some of the biggest private technology companies across the globe such as Alibaba affiliate, Ant Financial and TikTok parent, Bytedance. But shareholder state the country’s technology sector lacks in the innovation.
In an interview, Yuan Liu—MD of China-based VC fund Zhenfund—said to CNBC, “If you see at the last decade, there are numerous low hanging fruit after the opening mobile boom. And then subsequent to mobile, there has not been a new network to host and produce the new improvements from the platform. So people were reasoning whether VR (virtual reality) would be the next big thing or whether crypto would be the next big network that will do this. They did not turn out to be.” Liu further added, “And speaking about AI (artificial intelligence), there are a lot of expectations from the technology, products, and services.”
Recently, Bytedance was in news as the company now has 1 Billion users and many are from outside China. ByteDance—the Beijing-based startup after popular short video platform TikTok—has gained over 1 Billion monthly active users in its apps. A company official declared the milestone during the Shanghai Film Festival in recent time. A ByteDance representative said to CNN Business that a billion mark was surpassed previously in this year.