Asia PE-VC Summit 2020: What’s next for China and future course of tech in shifting world order

Asian markets, especially Greater China, have generally rallied from their virus lows while approaching the third quarter of 2020 driven by effective containment measures, economic restart, policy innovations, and technology development.

The overall GDP growth of developing Asia is forecast to rebound to 6.8 per cent in 2021, after an estimated contraction of 0.7 per cent in 2020 due to the virus-induced market downturn, according to data from Asian Development Bank.

As an exception that has largely freed from the impacts of the pandemic, China is leading Asia’s market recovery with a reported year-over-year (YOY) GDP growth of 4.9 per cent in Q3.

Amid a drastically shifting world order during a lasting tug-of-war between China and the US, what’s next for investors looking out for in the Asian market? Which industries will be the winners in the next decade in Asia?

We have put together four sessions and fireside chats that delve into the opportunities in the Greater China and pan-Asian markets at DealStreetAsia’s Asia PE-VC Summit 2020 on November 24-25.

How would COVID alter the future course of tech?

As the COVID-19 pandemic accelerates major consumer behavioural, economic, and market shifts worldwide, Race Capital, a Silicon Valley-based early-stage VC firm and an investor behind the now indispensable team communication tool Slack, is raising its stakes on the future course of tech to capture the next market transforming company.

After creating Race Capital this January, Hong Kong-born venture capitalist Alfred Chuang, now its General Partner, will share his insights into global tech investments and how the pandemic has altered tech development in the next decade.

Markets are back to rewarding innovation

The global market is rewarding players who are promoting the digitisation process to help people and businesses adapt to the virus-led new normal of staying back and working remotely. In Greater China, companies are piling to tap the stock exchanges to cash in such appreciation, not just in China’s domestic stock exchanges, but also in the US, despite a host of uncertainties from the pandemic to Sino-US political tensions.

In a fireside chat, global VC firm GGV’s Managing Partner Jixun Foo will delve into what he referred to as a year of “a roller coaster ride,” where the investment market shifted from a virus-induced slowdown to a tech IPO “euphoria” that throws tech valuations over the roof.

Joining this investor-portfolio conversation is Brian Gu, Vice Chairman and President of Xpeng Motors, a Chinese electric vehicle (EV) brand that manufactures what it calls “Internet cars” and a portfolio of GGV.

He will take us through the firm’s exciting journey marked by its $1.5-billion US market IPO milestone this August and Xpeng’s forward-looking investment in air taxi startup Xpeng Heitech to explore future mobility powered by vertical take-off and landing (VTOL) aircraft.

Valley side view of Asia’s tech ecosystem

Investment flows between China and the US fell to their lowest level in almost a decade in H1 2020.

Combined direct and venture capital investment between the two countries totalled $10.9 billion in H1 2020, the lowest since H2 2011, according to a report from consultancy Rhodium Group and the National Committee on United States-China Relations, a non-governmental organisation.

With a Biden administration and the signing of the world’s biggest trade pact RCEP in Asia, will tech startups in these emerging markets weather headwinds of the COVID-19 and geopolitical risks to regain their attraction to investors from the US?

Larry Li, Managing Partner of AMINO Capital; SC Moatti, Founder of Mighty Capital & Products That Count; and Arjun Sethi, Co-Founder & Partner of Tribe Capital will share their insights into Asia tech investment opportunities from the perspectives of Silicon Valley investors, in a panel moderated by Vedica Kant, Consultant at Boston Consultancy Group’s Private Equity & Principal Investors practice, on November 25.

Global investors’ take on SE Asia

While China is expected to enter a phase of less radical yet still vying diplomatic approach from the US under a Biden presidency, Southeast Asia is turning into a new battleground for global investors to seek growth opportunities.

According to a DealStreetAsia report, investments in Southeast Asian startups rose 91 per cent on the year to nearly $2.8 billion in the April-June quarter, while the number of transactions increased 59 per cent to 184 – up from 116 in the same period in 2019. But the value of all fundraising deals dropped to about $1.8 billion as the impact of COVID-19 continued to weigh on investors’ confidence.

Will Southeast Asia remain as a major beneficiary of the US-China geopolitical tensions? How are geopolitical issues adding fuel to the lift-off of startup development in the region? What are investors expecting from the emerging market for the rest of 2020 and in 2021?

On November 25, Rebekah Woo, Managing Director, Fosun will host a panel joined by Donald Lacey, COO & Managing Director of Ping An Global Voyager Fund; Wallace Guo, Managing Partner of Taihecap; and Soo Boon Koh, Founding Managing Partner of iGlobe Partners.

Catch these sessions live and more, now with a $100 off with code DSAREADER. Register Now!

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.