China's VC growth

"Venture capitalists stormed into China in 2004, investing $1.27 billion, almost 29 percent more than the previous year, according to Zero2IPO, a Beijing-based VC research firm.

Yet most of the capital is foreign, and most of the investments were driven by market opportunity, not new technology. Though China’s fabled 1.3 billion consumers may hold huge potential returns for both local and distant VCs, the IT venture market there still has some growing up to do."

[Red Herring]