If It's Possible, Founders Should Still Come to Silicon Valley

In the past, for Chinese entrepreneurs, building a company in China was without question the most natural and rational choice. At that time, China possessed the largest and most unified market in the world. Especially during the internet era, massive consumer demand and a population of over a billion created extraordinary opportunities. A product could scale nationwide in an astonishingly short period of time. Chinese founders also had an undeniable advantage: they understood their users intuitively — the language, the habits, the psychology. Capital was abundant. Dollar funds and RMB funds flowed in simultaneously. The speed and intensity of the market were unmatched. In many industries, becoming number one in China effectively meant becoming number one in the world.

For any Chinese entrepreneur, it was an exhilarating era — and it made perfect sense to build at home.

But that was the past. The foundational conditions that once supported that logic have fundamentally changed.

First, the era of abundant dollar capital flowing into China has effectively come to an end. While there is still residual capital in the system, looking forward, large-scale dollar-denominated investment in China has largely stopped. The funding landscape is no longer what it once was.

Second, many sectors in China have entered a phase of stock competition. Growth has slowed. Markets have stabilized. The explosive expansion that once characterized the environment is no longer the norm.

Third, the pathway to global capital markets has become far more complex. The era when companies could adopt red-chip structures and list overseas with relative ease is over. Today, Chinese companies seeking offshore listings must navigate not only international regulatory scrutiny but also domestic approval processes. The logic of entrepreneurship has shifted.

Yet change also brings maturity.

After decades of rapid development, Chinese entrepreneurs have been thoroughly tested. In terms of knowledge structure, international perspective, operational capability, and execution strength, they are among the best in the world. I genuinely believe that the Chinese entrepreneurial community is world-class — hardworking, sharp, resilient, and highly effective.

What is especially striking is the new generation. Young Chinese founders today grew up in a more prosperous, confident, and open environment. Their mindset carries an innate sense of global belonging. This is fundamentally different from the previous generation’s notion of “going abroad.” In the past, going global meant starting in China and exporting outward. Today, many founders begin with a global frame of reference. China is not necessarily the starting point; the world is the stage.

That shift in perspective is critical.

If you are ambitious — if you want to build a truly global company — then the question becomes: where should you begin?

If you start in China, your company is likely to follow a “China plus overseas” trajectory. If you start in Silicon Valley, your orientation is global from day one. You instinctively consider the world as your market and position your company within a global ecosystem. The difference in starting point shapes the scale and destiny of the enterprise.

Standing in Silicon Valley, you feel a distinctive energy almost daily. This is the birthplace of Google, Microsoft, Amazon, Meta, Nvidia, OpenAI — and thousands of companies valued in the billions or tens of billions. Innovation here is not abstract; it is visible and tangible. You can walk down the street and encounter companies whose products you use every day. The ordinary rhythm of life here unfolds alongside technology and ambition.

What makes Silicon Valley unique is not only the giants, but the density of innovation across all stages. Early startups, unicorns, university labs, corporate incubators — all coexist in a constantly renewing ecosystem. It feels like a living organism, continuously evolving.

Two forms of density sustain this ecosystem: talent density and capital density.

The concentration of talent is extraordinary. Sit in any café, and the people around you are likely to be founders, engineers, researchers, designers. Individuals from all over the world gather here, discussing new technologies, new ideas, new directions. In the era of AI, Silicon Valley has become the global epicenter. The proportion of Chinese engineers is particularly high, and their contributions in research, productization, and algorithmic innovation are significant. As large tech companies continue to restructure and downsize, many highly capable engineers will enter the startup ecosystem, seeding the next generation of AI-driven companies.

Capital is equally abundant. Not only American funds, but global capital flows continuously into Silicon Valley. Venture firms, corporate venture arms, family offices, angel investors — funding circulates freely. A sufficiently compelling idea can secure support quickly. Similar projects often receive higher valuations and larger rounds here, and it is easier to find investors willing to build long-term partnerships.

There is also an institutional advantage that is often overlooked: California does not enforce non-compete agreements. In China, non-competes are common; leaving a company often means waiting months before joining a competitor. In Silicon Valley, as long as intellectual property and confidential information are protected, talent can move freely. This mobility accelerates the circulation of experience, knowledge, and ideas, sustaining the ecosystem’s vitality.

None of this means that building in Silicon Valley is easy. The challenges are real.

Language and cultural fluency matter deeply — in communication, persuasion, fundraising. Legal and commercial norms differ and must be understood. Competition is intense. Thousands of startups operate simultaneously, and attention shifts quickly. You may see projects that appear mediocre raise capital, while your own technically superior product struggles to gain recognition.

There are also subtler barriers. For example, when well-known accelerators ask founders a series of questions in which a significant portion focus on China-related risks, it reflects a certain underlying bias. In some respects, the situation resembles the experience of Asian students applying to elite universities: one often has to be better to receive the same opportunity. Chinese founders may face stricter scrutiny and higher expectations.

Practical constraints exist as well — immigration status, team composition, restrictions in sensitive technological domains. These are not theoretical obstacles. They are concrete considerations. For some founders, returning to China feels more comfortable and predictable.

And yet, I continue to believe that if you are determined to build a new generation of great companies, and if you are willing to endure the first two or three years of adaptation, Silicon Valley remains one of the most worthwhile arenas in the world. The altitude of ambition here, the access to resources, the network density, and the ambient energy can take you to places that might be difficult to imagine elsewhere.

For me, this is not merely a geographic choice. It is a conviction.

I care deeply about China and about Chinese entrepreneurs. Precisely for that reason, my partners and I are committed to building a new-generation venture firm in Silicon Valley — one dedicated to supporting the next generation of Chinese founders as they establish themselves here, grow, and build companies that define their era.