How China is different from India in startup investing?

China and India have a fundamental difference when it comes to investing money in startups.

In China, the government is the largest investor in the country’s Venture Capital and Private Equity market, investing six times more than private investors.

In India though, this is completely different. Here, over 70% of the money invested comes from global investors, and only around 5% is invested by the government.

So what’s the impact of it?

Well, because of such heavy government involvement in China, they can invest in sectors that are crucial for national development. For eg, President Xi Jinping’s stated goal is to dominate in Industry 4.0 fields like AI, biotechnology and advanced manufacturing. And so most of the money in China gets invested into these sectors, which makes it a future superpower.

In India, investors, which are mainly based outside, invest wherever they think they can make good returns. For eg, it was ed-tech during the pandemic, and quick-commerce now.

[rsubhasify]

Private investors are mostly concerned about returns rather than the other aspects such as ethics, society, environment impact etc

[Just-An-AverageBear]

President Xi is a visionary leader that is genuine in making his country great again vs other leaders who just talk about making their country great.
President Xi has full heart in his country just like the late LKY of Singapore…

[prabhat_me_]

If govt. become investor here in India.... they will invest in their friend's company which will make good return for the politicians not for the country.

[Life_is_miraculus]

Finally someone said it there's no way a private investor will invest in uncertain tech which doesn't have short term benifits only government can do it we need more government investment in R&D for microprocessor, ai, quantum technology, bio tech, meta materials, robotics etc.

[googleGuy]

And people say Dictatorships don't work economically.

[vofficial]

A few days ago I read an article about government eyeing stake in startups and this is what many people said - "“[I] don’t understand the logic of the government trying to become a venture capital firm for chip design companies. This move is likely to be ineffective and inefficient, ” Pranay Kotasthane, a public policy researcher, said back then. They fear government taking equity could lead to government influence over company operations, Moreover, it could push other venture capitalists away." .

[shayanraj]

If government start investing in Technology, who will fund Freebie ? 😅
And there is useless opposition party which promiss 10x freebie than that.
(1lakh per woman every year💀)

[satwiksahoo]

In India.. we also have investment.. in free ration, ladli behna, ladla namuna, lifetime free bus, life time free water, lifetime free gobar, lifetime free hajj and madrassa. And interestingly, the beneficiaries think.. this is development world no.1 developed Dehati brain😅

[baikeiast]

India invested in exporting people to the west 😊😊😊😊😊😊

[ViGyaTam]

Thanks for bringing this up Caleb. Hope it’s hits somewhere

[manvithgbangerra]

Too much to learn from china for now 🔥❤

[InspireDaily_]

Yes we need to learn I think we don't copy the China investing that much money in Indian Government but we have to invest 20% to 30% by the government in the startups 😊

[devamjani]

Indian government must support startups. Good that in Gujarat our government is doing that and going 2 steps further by involving private players who will guide and help in everything from designing to prototype building to testing to marketing and networking and also setting up the factories.

[codewithmePuneet]

If india starts funding startups, it will invest in smaller startups such as a little telecom startup called jio, a startup in power and ports called adani or small other conglomerate like tata.

India likes to help out the little guys 🥺

[itsover]

Good returns can make the country much richer, allowing for more disposable cash ans taxes to spend on next gen tech and industries. Right now we need to make the pie much bigger.

[manan-]

Indians invest in hindu muslim, ram mandir, dalit shudra and 60% reservation.

[girish]

Not just something, you can learn everything from China.

[babajoshi]

This can never happen in India. As we are a Democratic country and all our politicians are corrupt.

[shubhamraj]

We can learn in lot of area from China

[kamaljeetsingh]

Let the market grow organically based on merit!! The more govt is involved the more likely they’ll control the market