VENTURE capital investment by Chinese-funded institutions surged 186.1 percent in the third quarter of this year from the previous quarter, with 38 contracts signed involving US$907.1 million, according to a recent report by ChinaVenture, a domestic financial consulting service provider.
In the third quarter, Chinese-funded and foreign-funded venture capital investment altogether stood at US$1.1 billion nationwide, up 44.3 percent from the second quarter. The investment was spread over 109 deals, the report said.
"Although the growth of Chinese-funded institutions in venture capital investment has gained momentum, they lack behind foreign competitors in terms of experience, scale of the funds and professionalism," Liu Liang, a senior analyst at ChinaVenture and one of the writers of the report, told Xinhua.
The focus of the venture capitalists had shifted from high-tech industry to traditional industries, namely franchised business, education, manufacturing, media and entertainment and energy industries. The five sectors attracted at least more than US$100 million each in venture capital, the report said.
"The research and development threshold of these traditional industries is low. Although return on investment of these industries is relatively low, the growth is quite steady," said Liu.