The U.S.-China trade war may have made Chinese money "toxic," but China is still a critical market for Israeli tech, and too huge to avoid, according to Israeli venture capitalist Adam Fisher, a partner at the Israeli office of venture capital firm Bessemer Venture Partners, headquartered in Menlo-Park, California.
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Fisher spoke Tuesday about China, growth opportunities for startups, and the pros and cons of going public at CTech by Calcalist's investors' event, It Tech Two to Tango, held at the events space of Labs, a coworking space located on the top floors of the Azrieli Sarona Tower in Tel Aviv.
In regards to Chinese money, Fisher said he urges all companies to be extremely cautious. I advise my own companies not to take it, he said. Chinese investors will spend more money, but it will come with several strings attached down the road, he said.
Israel is not the only country caught in the middle of this trade war, Fisher added.
Commenting on raising equity versus going public, Fisher said it may be very tempting to remain private, and that there are several factors are needed to succeed as a public company, such as having a growth rate of more than 30% and having a management team that can handle the immense costs of being a public company.
Fisher expects there to be approximately 10 Israeli companies who will seek initial public offerings over the next three years. Bessemer Venture Partners was the first institutional investor in online gig marketplace Fiverr Int. Ltd., which began trading on NYSE Thursday