Published On: Tue, Mar 22nd, 2016

Chinese investors: “There is a gap between the mutual effort to promote Chinese investments in Israeli technology and the results in the field”

VADI   Edwards You LYU Credit for pictures Ronen Machlev


Edwards You LYU, CEO of VADI, a Tel-Aviv based Chinese company: “Thousands of Chinese investors, owners of Medium size companies, are seeking strategic investment in Israeli startups”
“Despite the Chinese investments growth in Israeli hi-tech companies in the past year, there is still a gap between the mutual effort to promote Chinese investments in Israeli technology and the results in the field”, said Edwards You Lyu. Lyu, co-founder and CEO of “VADI”, who was a main speaker at IVC conference about Chinese investments in Israeli Hi-tech companies at the Tel Aviv stock exchange.
VADI Ventures Ltd, as a first of its kind Chinese-owned company established in Israel, was publically launched at the conference. The company, based in Tel Aviv, is aimed at supporting Chinese investors and entrepreneurs making their first steps within the high-paced, dynamic Israeli business and technology industries.
According to the latest information released by Chinese Embassy in Israel, nonfinancial investment from China to Israel is 6 billion USD in 2015. According to Chinese Ministry of Commerce, nonfinancial direct investment from China to foreign countries reached 118.02 billion USD in 2015.
Mr. Edwards You LYU, CEO and co-Founder of the company, who gave a keynote at the conference, said that “Thousands of Chinese investors, owners of middle-market companies, are seeking strategic investments in Israeli startups. However, it’s not easy for Israeli entrepreneurs to identify, who is a serious Chinese investor and who is not.”
“Giants like Baidu, Alibaba and Tencent are not necessarily the adequate investors for most Israeli startups”, said Edwards. “Compared with these enormous companies, part of them have partnered with Israeli funds, VADI represents a different kind of investors, more likely to do business with the Israeli startup market: Chinese small and middle size companies, most of them from the industry sector.
“Chinese Economy is now restructuring” he said, “Traditional industries feel an urgent need for transformation and upgrading through innovation. The Chinese stock market ups and downs also force public listed companies to manage their stock price. On top of that, there is an overseas M&A transition from natural resources to sci-tech, from billions to millions, from state owned enterprises to private owned business. For these Chinese investors, investment abroad serves them to get technologies, patents and international market


So where are the unknown, serious investors?

Edwards cites as an example the Chinese partners of VADI, organizations like China Zhisland based in Shanghai, a Business Club that unites 5, 000 entrepreneurs with over 100 million RMB each, over two thirds of them are from traditional industries like manufacturing, assembling etc. Another one is MICI (Made in China International), the largest supplier for overseas study tours in China, for Chinese entrepreneurs and business people, in collaboration with the best EMBA programs of best Chinese universities.


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