BEIJING, July 15, 2016 — Since 2014, the global focus has been on domestic capital output. As opposed to the past when Chinese buyers bought whatever real estate they fancied in Sydney and Toronto, the past few years have seen an increase in Chinese enterprises’ investment in and acquisition of foreign enterprises. However, most domestic enterprises’ capital outputs are centered on traditional industries, while those in the realm of science and technology are not a usual case.
Last week, the Sino-US Financial-Technology Venture Contest was held in Silicon Valley, the science and technology center of the U.S. The contest was held by 9F, together with a number of venture capital institutions such as Matrix Partners and IDG. A number of local financial science and technology projects signed up for the contest. The winning competitor Snapcard will take part in the finals of contest in Beijing. If it wins the contest, 9F and venture capital organizations will make a strategic investment in the project.
China’s Venture Capital Takes Aim at Silicon Valley
The Silicon Valley Station of “Fire Eyes” 2016 Sino-US Financial-Technology Venture Contest is hosted by 9F, undertaken by VCCA and SVACE and assisted by ZGC Innovation Center @ Silicon Valley. A number of well-known venture capital organizations like IDG, Matrix Partners and SIG Funds are part of it. The Silicon Valley Station marks the end of the preliminary stage of the Venture Contest.
Founded in 2006, 9F is one of the earliest internet finance enterprises in China. Last year 9F held the first “9F Cup” Internet Finance Venture Competition in which outstanding entrepreneurial projects like 58fangdai emerged.
In the large context of internet finance industry’s standardized development, the focus of this year’s 9F Venture Contest moves to the field of financial science and technology like big data risk control, anti-fraud and intelligence investment consulting. The origins of financial science and technology was in Silicon Valley. Fintech companies like Xignite, Premise, Betterment, Wealthfront and Motif investing are deemed desirable by institutional investors.
Financial science and technology is more often the supplement to traditional financial institutions, given the fact that traditional financial services in the U.S. are more developed. On the other hand, the Chinese domestic financial service system has a huge market potential. However, multi-factors such as the lack of scientific and technological innovation and the lagging supervision have rendered domestic financial innovation model-based, with little technological innovation. 9F, together with capital and venture capital organizations, goes global and moves on to Silicon Valley. The science and technology of Silicon Valley and domestic market are hence linked together. At the same time, 9F will lend support to the winner by opening various types of strategic resources accumulated over the past decade.
Science and Technology Helps Internet Finance to Take Again
The “TOP300 Unicorn Companies Ranking List by Valuation in China 2016″ released by iResearch recently includes 44 internet financial enterprises, accounting for more than 30% of total valuation. According to data from iResearch, internet finance remains the industry with the most active capital in China in 2016. The development trend of internet finance is still good. In the future, internet finance will continue in vertical, mobile and big data.
As the supervision on financial innovation and internet finance grows more rigorous, domestic internet finance enterprises maneuver towards transformation. In addition to its own commitment to scientific and technological innovation, 9F’s choice of “Going Global” is also a crucial shift in its science and technology transformation strategy.
Stones from other hills may serve to polish the jade of this one (We may build our own success based on the advanced experience of others). China and the U.S. have different languages and market environments. This results in considerable differences between U.S. Fintech and China’s internet finance in terms of business model, focus and the large environment of development. China’s Internet Finance can take a tip from the practical experience of U.S. Fintech. The 9F Venture Contest Silicon Valley Station is based on the consideration of such a kind of experience exchange and integration. Through the absorption and integration of the advantages of resources and advanced technologies in the financial science and technology innovation in China and the U.S., we try to create more valuable internet financial services.
With the advent of the era of standardization and as internet finance slows down, technological innovation will no doubt help internet finance take off again.