As China continues to undergo a focused shift from a manufacturing-based economy to one that relies heavily on service sectors and technology, Chinese investors are sourcing innovative technology through investments into tech companies abroad.
Media.net, an advertising technology startup based in Dubai and New York, has been acquired for around 900 million USD in cash by a consortium of Chinese investors. The consortium is led by Zhang Zhiyong, Chairman of Beijing Miteno Communication Technology Co, and it has already paid 426 million USD. Media.net, an ad partner of Yahoo Inc., posted 232 million USD in revenue in 2015. It attracted seven bidders in what the company itself calls the third-largest ad tech deal.
The abundance of viable tech investment opportunities available in the US and Europe have successfully attracted Chinese capital for the past few years. This includes partnerships in which European companies are supported by Chinese technology funds like Cocoon Networks. The European companies develop innovative technology, and take advantage of their contacts from Cocoon Networks to break into the Chinese market.
But recently, Chinese investors have been deploying capital in less well-established technology markets. The Media.net acquisition is one of few investments by Chinese entities in the Middle Eastern tech sector – but these investments are likely to become more common as the regional tech sector develops and grows.
According to Toby Basey-Fisher, founder of Eva Diagnostics, “I think contacts are by far the most important part of [Chinese investment]. There is a lot of investment available around the globe, at the moment, especially for innovative health tech companies. I think what’s most important is tapping into the likes of Cocoon Networks to actually be able to reach the right individuals to open doors and create new opportunity.”
Global technology businesses that are aiming to access Chinese capital or expand their network of business contacts in the Chinese market often find it difficult to decide where and how to start.
On December 7th, 2016, in Shanghai, Naseba will be hosting the Chinese Tech Investors Meeting to introduce pre-screened Chinese investors to pre-qualified technology investment opportunities from around the world.
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Naseba investor introduction
+971 4 455 7954