Several US venture capitalists, after visiting China's clean energy technology sector, openly admitted that China’s dominance has rendered most industries in this field in the West with little investment value.
According to Bloomberg, in July this year, eight partners from US and European VC firms jointly visited China, touring factories, speaking with local investors, and interviewing company founders, leading them to this conclusion.
Talia Rafaeli, a former investment banker at Goldman Sachs and Barclays and partner at Kompas VC, stated that while they knew China was ahead in batteries and “everything energy-related,” seeing such a vast gap firsthand made them question how European and North American competitors can survive.
German venture capital firm Planet A Ventures has decided to stop investing in Western startups involved in battery manufacturing and recycling, electrolyzers, solar and wind hardware, and similar fields. Another Berlin-based VC, Extantia Capital, also said that after their visit, the firm decided to cease investments in Western battery manufacturers.
Al Gore, former US Vice President and chairman of Generation Investment Management, said that China’s advantages in the energy transition are causing “many countries” to consider building closer ties with it. He described America’s retreat from transition technologies as a “tragedy.”
The report stated that these US and European investors do not have direct investment authorization in China; their goal is to avoid putting money into Western startups that cannot compete with Chinese counterparts. They plan to focus on discussing this topic during New York Climate Week, which began on Sunday (September 21).
According to Bloomberg, in July this year, eight partners from US and European VC firms jointly visited China, touring factories, speaking with local investors, and interviewing company founders, leading them to this conclusion.
Talia Rafaeli, a former investment banker at Goldman Sachs and Barclays and partner at Kompas VC, stated that while they knew China was ahead in batteries and “everything energy-related,” seeing such a vast gap firsthand made them question how European and North American competitors can survive.
German venture capital firm Planet A Ventures has decided to stop investing in Western startups involved in battery manufacturing and recycling, electrolyzers, solar and wind hardware, and similar fields. Another Berlin-based VC, Extantia Capital, also said that after their visit, the firm decided to cease investments in Western battery manufacturers.
Al Gore, former US Vice President and chairman of Generation Investment Management, said that China’s advantages in the energy transition are causing “many countries” to consider building closer ties with it. He described America’s retreat from transition technologies as a “tragedy.”
The report stated that these US and European investors do not have direct investment authorization in China; their goal is to avoid putting money into Western startups that cannot compete with Chinese counterparts. They plan to focus on discussing this topic during New York Climate Week, which began on Sunday (September 21).