Venus Medtech: Global Innovation in the Race Between China and the U.S.A.

Venus Medtech: Global Innovation in the Race Between China and the U.S.A.

By
Peter Ziebelman, Joseph Golden
2020|Case No.E693| Length 25 pgs.

The main purpose of the Venus Medtech case is to give students a greater appreciation for the scale, sophistication, and competitiveness of the innovation landscape outside of Silicon Valley, with particular focus on China. Through a dramatized account of the June 2013 Series A fundraising experience of Venus Medtech, a Chinese medical device start-up, the case forms the basis of a rich, in-class discussion about the similarities and differences between the entrepreneurship and venture capital ecosystems in China and the U.S. Considerable attention is given in the case to the factors that influence a Chinese entrepreneur’s decision to build a business and raise capital at home or abroad. The case also compares and contrasts the business practices of VC investors in China and the U.S., as well as the types of deal terms that they typically seek from start-ups.

Learning Objective

Students who want to pursue careers as either entrepreneurs or VC investors should walk away from this case with the clear understanding that Silicon Valley is not “the only game in town” when it comes to building, and raising capital for, highly innovative ventures. For entrepreneurs, China is an increasingly innovative rival, as well as a viable source of venture capital funding. For investors, China represents a credible and emerging competitor to Silicon Valley for deal flow.

This material is available for download by current Stanford GSB students, faculty, and staff only. For inquiries, contact the Case Writing Office.