Page 181 - How China Is Winning the Tech Race

Introduction
1. Tudou’s investors in May 2006 included Granite Global Ventures,
JAFCO Asia, and IDG Technology Venture Investments. Helen Wong is a
partner at Granite Global.
2. Silicon Valley owes much of its recent innovation boom to Chinese and
Indian citizens, who have accounted for nearly one-third of the region’s start-
ups since the 1980s, according to a study by the dean and professor AnnaLee
Saxenian at the University of California, Berkeley.
3. Heidrick & Struggles partnered with the Stanford Project on Regions of
Innovation and Entrepreneurship in an 18-month study of leadership skills at
Chinese high-tech companies. The study was released in November 2006.

4. Duke School of Engineering. Some experts claim that China uses a
broader definition of these categories and thus the Chinese numbers are in-
flated. Even by a narrower definition, China has the lead.
5. Additionally, some 112 Chinese start-ups, or more than one-third of all
Asian deals, got venture capital in 2006, up from 54 in 2005, according to the
Hong Kong weekly Asian Venture Capital Journal. China has been the
world’s fastest-growing venture market for several years but remains tiny
compared with the dominant U.S. market.
6. U.S. venture investment inched up 8 percent to $26 billion in 2006 and
chalked up $14.2 billion in the first half of 2007. This compares with 2,454
U.S. companies in 2006 and 1,319 in the first half of 2007, according to Ernst
& Young/VentureOne.
7. China Internet/Media report, Morgan Stanley Equity Research,
April 12, 2007.
8. GSR Ventures’ analysis based on data from Piper Jaffray and Ven-
tureOne. Market capitalization is based on the trading price at the end of
2005.

9. The source for the mobile phone figure is China’s Ministry of Infor-
mation Industry as of June 2007. The Internet figure is from the China Inter-
net Network Information Center as of June 2007. Global ranking of Web
sites is from Alexa Internet Inc.
10. China’s Impact on the Semiconductor Industry, PriceWaterhouse-
Coopers 2006 Update.

Endnotes 155