Silicon Valley’s early development could be divided into three phases. At first, capital was scarce, investors few, and entrepreneurs had trouble raising money: this described China in the late 1990s, at the time of Lin’s Alibaba investment. Next, money flowed in, the tally of venture capitalists shot up, and startups multiplied both in numbers and in ambition: this was analogous to China around 2010. Finally, as competition among startups became hectic and costly, the Valley’s venture capitalists performed a coordinating function. They brokered takeovers, encouraged mergers, and steered
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