Angel investing · Angel Networks

Why don't Euro Angels invest in Startups for China ?

Anonymous

September 16th, 2016

I often curse the day I had a Startup idea for China & India. Why ? Because I'm a euro Founder sat in London trying to get it funded. For anyone that doesn't know, that's like trying to sell tourism to europeans for a ISIS strong hold country. So why is it so impossible to find a Angel ? Consider
1. Team : CXO 4 Fintech Startups, 21yrs experience, Chinese market expertise,built & shipped across 70 emerging markets
2. Big Market : Our 2 main markets are the biggest in the world. China & India..
3. Big Problem : tackles their no.1 social problem
4. Market Validation : Confirmation from Chinese Industry experts & strong user research results. 92% said they'd use us, 58% said they'd pay triple our price point.
5. Regulation/Legal : Confirmed from data lawyer, all clear to do this.
6. Mobile Prototype : All built in Chinese
7. Revenue : It's a marketplace so it makes money from day 1 with a very disruptive business model.
8. Scalable : The Startup sits inside Asia's biggest mobile hub which gives us access to 80% of China from launch & 25% of India's mobile internet traffic. That's access to reach 1.1bn mobile users on day 1.
8. Exit : Experian paid $1.2bn for 30% of a company doing this in Brasil. Our markets are bigger.

So, pulling my hair out here, if anyone has any thoughts or suggestions, please speak up & share.
Many Thanks

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Viktor Dmytrenko Digital Marketing Manager at Ubertesters

September 19th, 2016

To bew short: no matter how much you invest guys from China will try to copy your idea. 

I have worked with China market for several years. When you want to promote somthing on China market or want to invest into some project: the best situation is when you give them a change to do anything with front-end but the back-end is under your and only your control.  

Andy Freeman Product Management and ... - Looking for new opportunities

September 18th, 2016

There are investors in both India and China.

One way to find them is to look for Indian and Chinese organizations that are trying to invest in Euro or US startups.

Jean-Claude Auger Director at Kyolaris Research Ltd

September 19th, 2016

Hello, 

I am not sure I have understood  well how your company is structured, where it is localized and how you are willing to operate but I can see few reasons that could prevent them from investing: 

If you have not opened a representative office in China at the moment you are looking for investors.
If you do not plan to have a registered company in China at the moment your business starts.  
If you do not have at least one Mainland Chinese in your executive team.

Not fulfilling these requirements inevitably creates big uncertainties on your capability to do business with Chinese companies in the Chinese market. 

They need to be fulfilled, to facilitate negotiation and relations with your Chinese clients and the Chinese local government represents you would have to deal with.

Finally, if your expected annual business revenue is about ten millions USD of order (or more), it is difficult to believe that, you will not have to rapidly face the competition of one or several local competitors. Those Chinese companies, could possibly be supported by Chinese regional governments if your are entering a market that is considered strategic by the Chinese central government.

That would decrease your probability to succeed and increase the risk to invest in your business.

Regards