hinese tech startups are racing to raise new funds to capitalize on the DeepSeek-induced fervor for artificial intelligence and the president’s support
for China’s enterprises.
Rid Vision, brain-computer interfaces for the company AI Care Medical, and robot-maker Shanghai Qingbao Robotics, which are among Chinese tech start-ups also seeking new opportunities in financing, reported Andrew Qian, a venture capitalist and CEO of New Access Capital.
He also reported “Many people are knocking at the doors of these AI companies, half discussing business cooperation, the other half talking about investment,". Qian added, "You can see from the DeepSeek case that a batch of Chinese innovators with disruptive technologies is emerging... Previously, Chinese start-ups were nearly all 'me too”.
The announcement of the AI-related deal also included the ones with chipmakers and cloud service providers that have breathed new life into the country’s venture capital. The result of this exists when it comes to venture capital, and even private equity companies, remains to be a stringent regulatory vetting of IPOs at home. This also highlights Sino-U.S. geopolitical tensions that work as a threat for offshore listings.
However, DeepSeek’s AI breakthrough and this month’s rare meeting between President Xi and tech business leaders have boosted investor sentiment. It is also worth mentioning that New Access Capital has invested in a chip startup and a maker of millimeter-wave antennas and is planning to invest in a company focused on rocket recovery technology.
It is also worth mentioning that, according to Reuters, the latest round of investment is primarily focused on companies that benefit from China's AI advancement. The AI image generation platform named LibLib AI announced recently that it is investing several hundred million yuan in a new funding round this Monday at what the companies name “record-breaking pace of financing”.
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It is also worth mentioning that ever since the launch of DeepSeek, the AI model has “the sentiment has improved a lot,” said Huo Zhongyan, the founder of Bonanza Capital, which has also invested in an AI-powered garment designing.
Morgan Stanley also said that “People get more sanguine about China's future ... Stock bullishness made entrepreneurs more confident, and investors more willing to place bets."
By
Adam Brown
•
February 28, 2025 11:15 AM
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