Chinese factories race to find next big startup
Contract manufacturers are playing the role of venture capital firms
As competition for Chinese tech manufacturers rises in Southeast Asia, some firms are trying to stay ahead of the curve by seeking out new startups on the ground floor.
Bloomberg reports that factories such as Jetta Company Ltd in Guangzhou are seeking out entrepreneurs and building out prototypes and test batches of new products to test the market.
Paul Travers of New York-based Vuzix told Bloomberg that “the [venture capital] structure has given manufacturers a model of investment…Investing also ensures future business.”