Here comes the venture money
So it seems, venture capitalists have been increasingly investing in the Chinese version of garage startups, according to this WSJ story (subscription required):
The total number of U.S. venture-capital deals in China in 2004 soared to the highest level in 10 years, according to the Arlington, Va.-based National Venture Capital Association. The 43 Chinese deals dwarfed the 24 investments made by U.S. venture capitalists last year in India, a country better known for its high-tech prowess.
Although the $557 million that U.S. venture firms invested in China last year was less than the $725 million invested in 2003, total venture-capital investment in China last year -- including non-U.S. firms tracked by Beijing-based research concern Zero2IPO Ltd. -- hit $1.27 billion, up 28% from 2003. Indeed, Doll Capital Management co-founder David Chao, at a venture-capital conference in Beijing this month, raised the possibility of a "bubble" in the market, particularly for mid- to late-stage investments in China.