Flush with capital from success in their home market and a booming stock market, Chinese tech companies are investing overseas to acquire technology, talent, and know-how. Chinese outbound direct investment grew from $2.7 billion in 2002 to $102.9 billion in 2014, according to Chinese Ministry of Commerce data. That’s an incredible 40x increase over a mere 12 years. Data points to consider:
- Alibaba’s $220 million investment for 20% of mobile video app Tango
- Baidu’s strategic investment in Uber
- Tencent’s investments in SnapChat, KakaoTalk, Epic Games, and Riot Games
- Lenovo’s purchase of IBM’s low-end server business for $2.3 billion
- Huaxin’s 85% stake in French telecom Alcatel-Lucent
The Chinese technology companies and investment groups we work with are seeking:
- Access to new markets overseas.
- Useful technologies, capabilities, and talent to help them compete in the domestic China market.
- Diversification of their investment portfolios.
Newport’s value proposition is to connect our Chinese tech clients with North American investment targets, assist with transaction execution, and manage portfolio companies once capital is deployed.