What fuels the “frenzy” and FOMO among early-stage investors?

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Beijing’s push to back “future industries” and narrow the technology gap with the US is driving the frenzy and FOMO among early-stage investors.
The scramble among early-stage investors in China is being fuelled by Beijing’s highlighted need to bolster “future industries” and “strategic emerging industries,” alongside a push to narrow the technological gap with the United States in areas including AI and space. This has fed fear of missing out, with some venture funds “pulling the triggers more often” as they compete to fund startups in sectors such as space, quantum technology, nuclear fusion, brain-machine interfacing, biomanufacturing and hydrogen energy.
Beijing’s “future industries” and “strategic emerging industries” are the core driver
Beijing has highlighted the need to bolster “future industries” in its next five-year plan, published in March, and the grouping includes biomanufacturing and hydrogen energy. The same development blueprint also identified sectors like robotics and aerospace as “strategic emerging industries” earmarked for priority development.
Competition intensifies as investors chase frontier sectors like space and quantum tech
The fundraising push is centred on startups working on areas that Beijing flags as “strategic emerging and future industries,” including space, quantum technology, nuclear fusion and brain-machine interfacing. In this environment, venture funds compete aggressively in fields such as nuclear fusion, quantum technology and embodied AI, where investors are described as “throwing money at future industries.”
Policy support for listings of unprofitable “future industry” startups adds urgency
China also published rules to support domestic stock market listings of “future industry” startups, typically firms working on frontier technologies that have no profit or revenue. That backdrop helps explain why some companies are able to raise large amounts early, while investors line up for subsequent rounds.
Market momentum in venture capital and private equity amplifies FOMO
Venture capital and private equity investments in China totalled 620 billion yuan in the first five months of this year, nearly 60 per cent higher than a year earlier, while newly registered venture capital funds reached 154 billion yuan in the first five months of 2026, already exceeding last year’s total. Industry participants describe the level of frenzy as unusually intense, with early-stage deals attracting rapid follow-on interest—sometimes before the prior deal is completed.

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What fuels the “frenzy” and FOMO among early-stage investors?

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