As a result, we see hundreds of tech start-ups emerging in the past few years . The start-up scene has also drawn some serious international attention. Zhonguancun, a start-up hub in Beijing, and Shenzhen, a populous city in Guangzhou Province, have both earned the moniker as the “Silicon Valley of China”. Among the cluster of start-ups headquartered in Zhongguancun, Xiaomi now has a market cap around $70bn. The company has experienced tremendous growth since its birth not too long ago in 2010. Zhonguancun also has Baidu, a search engine that has dominated mainland China. In Shenzhen, we see tech giants like Huawei and Tencent, each now with remarkable sales and reach that would dwarf many of their western counter parts. And thanks to Alibaba, Hangzhou now starts to bud as another start-up hub. Meanwhile, Shanghai is also trying to catch up. Given its financial strength and unique culture, many life-style technology companies have succeeded in the city of Shanghai.

In some sense, China now resembles post WWII America. When the country is on its rise, many people made a lot of money. Now they might want to diversify their investments, or perhaps they just like the idea of getting richer faster. But there simply aren’t enough projects around for them to invest in. Given this scarcity, entrepreneurs can now easily get funded for any ideas as long as they can make pitch decks and sell.

It is crazy how years after ofo and mobike dominated Chinese bike-sharing market, you can still find new bike sharing companies with the same business model entering the space. This means people are still walking to investors, pointing out the window at ofo bikes and saying, “I want to build something just like that.” Then they find themselves walking out the room with some seed money.

How is this possible?

‘Cuz diversification, or shall we say, spray and pray.