VC in Chinese tech firms drops by 84% in Q1 2012 versus Q1 2011

A new study by Thomson Reuters reveals that in Q1 2012, venture capital in Chinese tech companies fell by 84 percent compared to Q1 2011. The new data released on Monday shows that venture capital firms invested only $138.5 million in Chinese Internet companies versus $866.5 million in the same timeframe last year. Reuters cites a "slew of accounting scandals , and fears that the corporate structures used by China's Internet firms could face greater scrutiny from Chinese authorities" which have spooked US investors in the past year. The report adds that these issues have slowed the rate of taking Chinese companies public. With fewer IPOs, there is less willingness to invest venture capital money. China, of course, has the largest number of Internet users of any single country in the world , at just under 500 million. It has some of the fastest growing tech companies anywhere, including search engine Baidu and social network RenRen, which are listed on the NASDAQ and New York Stock Exchange, ...

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