China remains red hot among venture capitalists from Silicon Valley and the Sandhill Road VCs favorite banker, Silicon Valley Bank has made it much easier for them with their announcement of a new office in Shanghai by the end of the year.

"We have been calling on Chinese venture capitalists and technology-focused businesses for many years now and we truly believe that China has proven that it will be a global technology power. The SVB Financial Group presence in Shanghai will only further reinforce our commitment to and support of China's venture capital industry as well as for U.S. VCs and companies interested in having a presence in China," claims Ash Lilani, head of global markets for Silicon Valley Bank.

Last year, SVB led a huge delegation of US VCs to China mindful of the Middle Kingdom's large pool of inexpensive labor, and enormous market potential. With roughly half of the nation's venture-capital firms and scores of venture-backed companies among its clients, Silicon Valley Bank (SVB), headquartered in Santa Clara, California, wields enormous influence within the close venture community.

Those VCs know that early-stage investors are plowing money into China, and now placing permanent US educated Chinese staff in senior management positions among many of these technology start-ups.

"The VC industry in China is quickly developing, albeit still in an emerging state. More and more, China-focused funds are coming to the market, many of which are joint ventures with experienced U.S. venture funds. Asian regional funds and even local funds are moving up the learning curve quickly due to their investing experiences in China. In the last 12-18 months these funds
have experienced some meaningful exits and as a result have established early, but positive track records," states Daniel Quon, senior vice president of global financial services - Asia, Silicon Valley Bank in an interview with ChinaVentureNews.

Although SVB will not have direct banking capabilities in China, the bank's consultancy and advisory experience translates perfectly for the nascent Chinese technology entrepreneurship and venture capital management.

SVB began its pioneering efforts in China as part of a global effort to build relationships with venture capital investors worldwide in the 1990s. Its high profile and enviable track record has enabledd the bank to develop and cultivate effective relationships with VC firms in Asia.

Bankers historically quite conservative, and adverse to risk, might want to take notice of SVB's bold and innovative business steps in a new China that still experiences periodic tight controls on capital and a dearth of local management talent.