From the outside, China’s technology sector looks like a dealmaker’s dream. The private market is awash with venture capital money, and 65 companies are valued at more than $1bn, a total of $427bn, neck-and-neck with the US.
But those inside the industry know this competitive scene is fraught with distrust. Bao Fan, the 47-year-old founder of boutique tech investment firm China Renaissance, has surpassed his international competitors to advise by far the highest number of Chinese tech deals last year, amounting to $11.7bn.
But he has also managed to win trust from all sides. “Trust allows us to do our job as champions to all players in China’s new economy,” wrote Mr Bao on the first page of their prospectus for an initial public offering in Hong Kong last month. The company raised $324m, but its share price has been falling since — along with a general downturn in the stock market for Chinese tech companies this year.