The KungHo Fund specifically targets startups looking to enter or expand within US markets. This geographic decision was intentional and is based on a number of trends:
US Scientific and Technological Advantages Stand Out Amidst the Shock of the Pandemic
- With the world’s leading biomedical technology, the U.S. has taken the lead in recovering from the pandemic
The Three Traditional Strengths of American Innovation Remain Strong in the Post-Pandemic Era
- Technology: The U.S. still leads
- Talent: U.S. universities still produce the most outstanding talent
- Market: The U.S. remains the largest financial and consumer market
Post-Epidemic Trends: Reasons for Accelerated Flow of Capital and Talent to the U.S.
- The need to avoid risk: The U.S. remains the world’s strongest nation (militarily, economically, politically, and technologically), and its democratic political system provides a more stable social environment
- The need for asset allocation: especially for investors whose main assets are not yet invested in the US
- The need to fight inflation: global inflation, Federal Reserve rate hikes, overseas funds coming back to the US
Trends of Chinese Entrepreneurship and Venture Capital in America
- Entrepreneurial enthusiasm of Chinese immigrants continues to rise
- More self-confidence and affordability
- Wealth Creation Effect
- U.S. career paths have become less attractive
A New Form of Transnational Entrepreneurship Taking Shape in Response to New Geopolitical Trends
- U.S. original technology (scientific research, technological advantages, intellectual property protection advantages)
- China engineering center (Advantage of both quantity and quality of Chinese engineers)
- Production base in China (supply chain advantage)
- U.S. market advantage (U.S. single market advantage + global expansion advantage)
- U.S. listing (capital market advantage)
Chinese Individual Venture Capitalists Tend to be Active
- US is an attractive market for overseas Chinese investors