Offered that Sinovation Ventures founder Dr. Kai-Fu Lee has about fifty million followers on Chinese social networks, he has turn into an oracle when it arrives to predicting the upcoming of tech in China. Kai-Fu Lee talked about the most critical trends in Chinese startups at TechCrunch Beijing 2016.
Sinovation Ventures a short while ago raised the equal of $675 million in full throughout a Chinese and an American fund, and the organization has in excess of 300 companies in its portfolio. “We can devote up to $15 million for each organization now,” Kai-Fu Lee stated.
And by far, the most critical spot for upcoming Sinovation Ventures investments will be artificial intelligence. Several men and women imagine about autonomous autos, but Kai-Fu Lee also would like to devote in image recognition technologies, money applications and even health care startups relying on artificial intelligence. Almost half of Sinovation Ventures modern investments have been in artificial intelligence.
“AI is seriously altering every single job and every single market. There is almost very little that will not likely be touched by AI,” Kai-Fu Lee stated. “You could very easily imagine education and learning applications for instance — AI could change a lot of the essential teaching functions. Medicine and well being are also key locations.”
And of course, there’s an underlying issue with artificial intelligence — will men and women still have careers at the time artificial intelligence requires in excess of? Kai-Fu Lee is aware of this problem but also optimistic.
“AI works really tough and is really low cost. Humanity as a whole will have a lot extra sources and we will in all probability be ready to get care of all people many thanks to AI,” he stated. “As for human mankind, we are in all probability not here on Earth to execute repetitive and non-productive jobs,” he ongoing.
According to him, transportation is likely to be the most significant market that is likely to be disrupted by artificial intelligence, starting with truck drivers. “That’s why Otto was acquired by Uber in the U.S.,” he stated.
When it arrives to health care, Kai-Fu Lee was a bit extra cautious, indicating that it’s likely to get a although and be a progressive improve. “That one particular is a bit tricker because it truly is human lives at stake — it could start as human aid,” he stated.
But it does not indicate that the organization only would like to focus on sophisticated tech achievements. Sinovation Ventures is also investing a lot of revenue in amusement and written content companies. For instance, the organization has invested in a assortment Tv display, which is very unusual for a VC fund.
“We are likely to make more compact investments in the U.S. so that we can get in and find out from these investments,” Kai-Fu Lee stated. It could indicate investing in components companies, toy companies, and many others.
I wouldn’t wager on Chinese companies staying really effective outside of China in excess of the subsequent number of several years
Lastly, Kai-Fu Lee talked about the point out of consumer merchandise in China. “I imagine the consumer mobile world-wide-web is extra state-of-the-art in China than in the U.S. because Chinese end users had been behind, so now they can go ahead and jump a number of actions,” Kai-Fu Lee stated “People jumped instantly from dollars to mobile payment. In specified locations like mobile payment, mobile gaming, mobile conversation, China is major.”
According to him, big companies like Facebook and Google shouldn’t even try to contend with Chinese consumer giants, these types of as WeChat, as it’s in all probability far too late.
“Companies like Facebook or Google could focus on their manufacturer new merchandise that could not have a Chinese equal or manufacturer,” Kai-Fu Lee stated. “For case in point, Facebook has Oculus and I imagine Google also has technologies that just isn’t matched by Chinese rivals. I would try to launch them in China.”
But the same is legitimate for Chinese companies attempting to get market shares in the U.S. “But WhatsApp is previously a dominant product in the U.S. So it truly is really tricky for a Chinese organization to enter that place,” Kai-Fu Lee stated. “I would not wager on Chinese companies staying really effective outside of China in excess of the subsequent number of several years.”
So it appears like Chinese startups will still dominate in China although American startups will dominate in the U.S. As Uber’s exit from China confirmed all people, it’s still tough to turn into a legitimate worldwide leader.