China’s Latest Export: Capital for Cleantech Start-ups
Lastly, there are, inevitably, cultural differences to overcome in soliciting, negotiating and carrying through with an investment between companies from two different countries. For example, many U.S. entrepreneurs are used to pitching professional investment firms armed mainly with a patent, a great Powerpoint pitch and a plausible Excel model. In China, securing capital is often a more personal odyssey, dependent on long-time relationships, trust-building rituals and valuations grounded more in the past than the future. Patents only get you so far, as Chinese cleantech investors are often looking for technologies that are “shovel-ready” or at least close to commercialization.