Speaker 1: Bloomberg's Juliette Sally joins us and she's got a special guest, right, Jules,
Speaker 1: I do. Indeed, Dougett is getting very exciting here because,
Speaker 1: as you say, we're about to kick off in about
Speaker 1: ten minutes time, and we'll hear from our founder, Michael Bloomberg,
Speaker 1: founder of Bloomberg LP and Bloomberg Philanthropies and three term
Speaker 1: of New York City. But with me here in Singapore
Speaker 1: right now is jimmy venture Partner's founding manager partner, Gary Rochelle. Gary,
Speaker 1: great to have you with us. I mean, we've seen
Speaker 1: Presidents Biden and she now meet for the first time
Speaker 1: since President Biden became the leader of the United States
Speaker 1: really trying to find an off ramp here in these
Speaker 1: U S. China tensions. How are you seeing that all
Speaker 1: play in to your business? Are you still seeing strong
Speaker 1: I guess demand or is this really starting to impact business?
Speaker 1: I think over the last several years, and by the way,
Speaker 1: thank you very much for having me this morning, But
Speaker 1: over the last several years, um, the entrepreneurial community, that
Speaker 1: early stage of venture capol community in China has continued
Speaker 1: to be quite active. Um again, I think that there's
Speaker 1: a significant separation between you see in the geopolitical realm
Speaker 1: and what's happening on the ground with real early stage
Speaker 1: start up entrepreneurs, which is what chieving businesses. You could
Speaker 1: almost feel, however, this morning, when people started getting together,
Speaker 1: there was this this exhale of Okay, the US and
Speaker 1: China are going to talk. And I think that the
Speaker 1: world has been waiting to at least acknowledge or at
Speaker 1: least understand whether or not they're going to talk. And
Speaker 1: I think that that makes a significant difference, and you
Speaker 1: can feel it really in the conversations with people this morning.
Speaker 1: The entrepreneurs in China, however, the last several years, none
Speaker 1: of them wake up in the morning deciding whether to
Speaker 1: start a business based upon chijin p They are really
Speaker 1: there to satisfy the growing and substantial need in the
Speaker 1: Chinese market, and particularly the areas of technology and healthcare,
Speaker 1: which the two areas achieving focuses on. So I could
Speaker 1: say everyone's happy, everyone's has a chance to be slightly
Speaker 1: less despondent today, But I don't think it really has
Speaker 1: impacted how entrepreneurs think about their role in Chinese Chinese economy.
Speaker 1: What about what we saw from the Party Congress. Then
Speaker 1: did you see some changes in terms of whether or
Speaker 1: not there's going to be more funding and have you
Speaker 1: been seeing a drop off and funding at all? So
Speaker 1: there is a drop off in funding, particularly in the
Speaker 1: late stage crossover round so pre I p O rounds.
Speaker 1: When there's no I p O then they can't have
Speaker 1: a pre I p O financing. UM. I think that
Speaker 1: in the early stage startups, the firms that are organized
Speaker 1: to deploy capital against those real technology development UH cycles.
Speaker 1: Our average holding period in achieving is eight plus years
Speaker 1: in our portfolio for people that are in that world.
Speaker 1: I still think there's robust capital and I still think
Speaker 1: there's quite a bit of activity. But the big dollar,
Speaker 1: the big headline dollar deals that Tiger Global, soft Bank
Speaker 1: and others do, those have definitely UH either disappeared completely
Speaker 1: or dramatically reduced. This year nine I p O is
Speaker 1: for achieming this year and not not a bad year.
Speaker 1: I think you called it decent when you're on Bloomberg
Speaker 1: Television earlier, What have you been mainly investing in? What
Speaker 1: are you looking to invest in? So what we made
Speaker 1: we made a significant change about seven years ago and
Speaker 1: we moved from having a significant waiting in the consumer
Speaker 1: facing businesses to more core tech basis. So on the
Speaker 1: tech side, UM, we have a robust UH semiconductor UH
Speaker 1: set of investments, quite a bit of software as a service,
Speaker 1: intelligent manufacturing AI. It's hard to really bucket AI because
Speaker 1: AI really really is tied to applications. So those are
Speaker 1: really the core areas for the GMIN tech practice. Healthcare
Speaker 1: you see more and more investment in what i'd call
Speaker 1: early stage pharma and again technology development around self therapy,
Speaker 1: gene therapy UM, and then the service assiety in China.
Speaker 1: China is still short four million doctors, it's still short
Speaker 1: for seven million nurses. So you're thinking about adding eleven
Speaker 1: million healthcare professionals just to kind of get to the
Speaker 1: base of what's required to provide care. That's a big number. Okay,
Speaker 1: So healthcare certainly and focus there, and as well, you've
Speaker 1: been looking at the software infrastructure. I mean, we look
Speaker 1: at the inflation picture, higher rates from the FED that
Speaker 1: does often aid into TACH funding. As we've discussed in
Speaker 1: terms of your funding levels that you're seeing, do you
Speaker 1: see opportunity if we are going to see a global downturn,
Speaker 1: is this the time when the entrepreneurial spirit really tries
Speaker 1: to pick up talent that might be dropped elsewhere. I
Speaker 1: think that that is correct. So some of the larger
Speaker 1: firms now they're shedding quite a few employees UM in
Speaker 1: the US. Haven't seen quite as much of that in
Speaker 1: China yet, but but a substantial amount in the US
Speaker 1: if I'm looking at it just from the perspective in China.
Speaker 1: The market opportunity in China to kind of rehost the
Speaker 1: entire economy on a century technology platform that has not changed,
Speaker 1: and what's going to change is the rate at which
Speaker 1: we move in that direction. So what we can't really
Speaker 1: decide to, we can't really look at today or predict today,
Speaker 1: is how rapidly will China develop all of its own
Speaker 1: cloud services? How rapidly will right now? In advanced manufacturing
Speaker 1: intelligent manufacturing, only seven percent of China's manufact actuation base
Speaker 1: has moved to and tell what we'd call and consider
Speaker 1: intelligent manufacturing, So there's still some very very long tails
Speaker 1: in terms of reaching critical mass in those areas. That
Speaker 1: is probably a little less certain today because you're not
Speaker 1: sure what the following capital of the ability is going
Speaker 1: to be. So We're gonna have to see how that
Speaker 1: plays out. When do you see a full reopening of
Speaker 1: the China economy, So it has to it won't occur
Speaker 1: until there's a significant uh just elimination or ignore a
Speaker 1: zero COVID policy, So that's probably in the third quarter
Speaker 1: of next year. We want to talk as well about
Speaker 1: your aunt steak. What evaluation have you assigned there? I'm sorry,
Speaker 1: what's taking your aunt steak? Oh, we don't have an
Speaker 1: ant steak. You don't have an cheaming. I wish I
Speaker 1: had an ant stake, but I don't have an answer.
Speaker 1: That is that is my about on on my radio
Speaker 1: search there. And we thought you did in terms of
Speaker 1: how you're evaluating your China allocation there, but what about
Speaker 1: reevaluating exposure in any way there? So I think that
Speaker 1: what you reevaluate is reevaluate again by sector. So you
Speaker 1: look at is the consumer sector going to recover bounce
Speaker 1: back quickly? Know? Anything where the government has sensitivity over
Speaker 1: data ownership, that's not going to recover quickly. Um, So
Speaker 1: what you do is you tend to look for areas
Speaker 1: where okay, this is purely a commercial enterprise and you
Speaker 1: have less and less government interference. Clearly, if the government's
Speaker 1: putting their finger on the scale in a particular area,
Speaker 1: that's scenario we would probably avoid. You mentioned earlier, a
Speaker 1: big sigh of relief. How do you feel the world
Speaker 1: has also just changed in the past year or so.
Speaker 1: I'm not sure if you're at the Blimberg New Economy
Speaker 1: Forum a year ago, but Singapore has certainly opened up
Speaker 1: so much. I mean, you must be seeing a lot
Speaker 1: more opportunity and ability to start to do business more
Speaker 1: freely Singapore. I was here last year and Singapore is
Speaker 1: a very very good microcosm of what's happening. So the
Speaker 1: energy in Singapore is amazing. Clearly a great deal of
Speaker 1: capital has flown into flown into the area. But you
Speaker 1: almost seech Singapore taking on a global rule now as
Speaker 1: the Geneva of Asia. So going back years when they
Speaker 1: were global conflicts and wars, Geneva broken by the Swiss,
Speaker 1: was still able to have different constituencies Nazis, Jews, etcetera,
Speaker 1: get together and have conversations. You see Singapore now being
Speaker 1: able to have North Asia, China, India, Southeast Asia, people
Speaker 1: from your people from the United States. It really, it's really,
Speaker 1: it's time and I think it has an extraordinary base
Speaker 1: to work from today, the Geneva of Asia. I love it.
Speaker 1: Thank you so much for your time. Teaming Adventure Partner's
Speaker 1: founding managing partner Gary Michelle with me here at the
Speaker 1: fifth annual Bloomberg New Economy Forum in Singapore