The New Silk Road of Venture Capital: Why Sky9 Capital is Betting on Paris

PARIS, FRANCE – October 11, 2026 – Station F, the sprawling former freight depot in the 13th arrondissement of Paris, was designed to be a crossroads of global innovation. Today, it is welcoming a different kind of freight: a massive influx of Asian venture capital seeking safe harbor and new frontiers. Sky9 Capital, an Asia-rooted technology venture capital firm managing approximately $2 billion in assets, has officially opened its doors at Europe's largest startup campus. This marks the firm's fourth major global hub, joining Singapore, Shanghai, and San Francisco.

At first glance, a venture fund expanding its footprint is standard industry practice. But beneath the surface of this announcement lies a profound shift in the tectonic plates of global finance. As geopolitical tensions continue to redraw the map of technology investment, the traditional corridor between Silicon Valley and Shenzhen is becoming increasingly fraught. In its place, a new Silk Road is emerging—one that routes directly through the heart of Europe.

The Paris Magnet: Deep Tech and the European Alternative

For years, European tech was viewed by international investors as a fragmented, secondary market compared to the hyper-growth ecosystems of the United States and China. That narrative is rapidly dissolving. In 2025, Chinese direct investments in Europe surged by 67 percent to €16.8 billion, a dramatic rebound heavily concentrated in technology and industrial sectors. Hong Kong has recently surpassed Japan and mainland China as the largest Asian backer of EMEA companies, signaling a coordinated, pan-Asian pivot toward the continent.

Paris, in particular, has positioned itself as the crown jewel of this European renaissance. Driven by aggressive industrial policy, public investment vehicles like Bpifrance, and a deep pool of engineering talent, the French capital has become a premier hub for artificial intelligence, deep tech, and quantum computing. European deep tech funding reached a staggering $20.3 billion in 2025 and is projected to eclipse $44 billion this year.

It is within this fertile ground that the Singapore-headquartered firm has planted its flag. By embedding itself in Station F, the venture capital firm gains immediate proximity to a highly concentrated pool of over a thousand early-stage companies and international entrepreneurs.

"Sky9 Capital's arrival at Station F strengthens the bridge between European and Asian innovation. We look forward to seeing the connections this will create for our entrepreneurs as they develop their projects internationally," said Roxanne Varza, Director of Station F.

Behind closed doors, industry analysts note that this is not merely about funding European startups; it is about accessing European intellectual property and regulatory frameworks in an era where the global AI race is broadly defined by three pillars: American innovation, Chinese industrial execution, and European regulation.

A Cross-Border Playbook for a Fragmented World

Founded by veteran venture capitalist Ron Cao, the firm is no newcomer to the complexities of scaling global businesses. Over the past decade, it has backed more than 150 startups across Asia and the US, a portfolio that has yielded 16 global IPOs and 19 M&A exits. Its track record reads like a directory of the modern digital economy, including early bets on consumer internet giants like Meituan and PDD Holdings, alongside autonomous driving pioneer WeRide, which achieved a dual listing in the US and Hong Kong late last year. The firm has also seen massive success in specialized sectors, navigating the public offerings of companies like Energy Monster and AI-driven drug discovery platform XtalPi.

What sets this Paris expansion apart is the explicit dual-mandate of the new office. It is designed to serve as a launchpad for Asian portfolio companies looking to penetrate the European market, while simultaneously identifying European founders who require Asian manufacturing supply chains and consumer markets to scale globally.

"I am very excited about our Paris office at Station F, as we partner with one of the best European startup ecosystems to continue building out our long-term commitment to connecting Europe and Asia," said Ron Cao, Founder of Sky9 Capital. "We look forward to supporting Asian companies expanding into Europe and backing European founders with global ambitions."

This cross-border playbook is a calculated response to a fragmented world. For European hardware and deep tech founders, scaling often requires the advanced manufacturing capabilities concentrated in East Asia. Conversely, for Asian software and consumer tech companies, Europe represents a massive, wealthy consumer base that is currently more politically accessible than the United States. The firm is positioning itself as the tollgate on this increasingly busy two-way street.

Geopolitics and the Shifting Venture Map

The macroeconomic reality driving this expansion cannot be ignored. The US-China tech decoupling, accelerated by a series of executive orders from Washington targeting American investments in critical Chinese technologies, has forced Asian capital to seek alternative avenues for deployment and diversification.

With the United States heavily scrutinizing foreign investments in AI, biotechnology, and semiconductors, Europe has emerged as a necessary alternative. While the European Union is exploring its own outbound investment control mechanisms and has enacted comprehensive, world-leading legislation like the AI Act, its ecosystem remains comparatively open to inbound foreign capital. This is especially true when that capital brings tangible operational expertise and access to vast Asian consumer markets. The AI Act, rather than being a deterrent, has provided a clear, predictable regulatory framework that institutional investors can underwrite—a stark contrast to the volatile, politically driven regulatory environment currently defining the US-China corridor.

Financial strategists observing the space point out that Asian funds are actively seeking diversification away from the inflated valuations of US technology companies. Europe offers a compelling arbitrage opportunity: world-class engineering talent and deep tech innovation at valuations that are historically much more grounded than their Silicon Valley counterparts. By establishing a physical presence in Paris, the venture firm can originate deals locally rather than competing in the crowded, overpriced bidding wars of San Francisco.

The Road Ahead for European Sovereignty

As capital flows shift, European policymakers find themselves walking a delicate tightrope. On one hand, the influx of experienced, deep-pocketed venture capital from international firms is essential for European startups to scale into global champions. Public investors have done the heavy lifting to seed the ecosystem, but private, international capital is required to fuel the later stages of growth.

On the other hand, there is a growing chorus of concern regarding European tech sovereignty. As foreign capital secures significant stakes in the continent's most promising AI, biotech, and quantum computing ventures, Europe faces the risk of becoming a mere incubator for technologies that will ultimately be controlled and commercialized by foreign entities. European leaders are acutely aware of the danger of remaining a consumer and regulator of technologies developed elsewhere, rather than a sovereign creator.

Navigating this tension will define the next decade of European industrial policy. However, for the founders working late into the night at Station F, geopolitical grand strategy often takes a backseat to the immediate realities of building a business. They need capital, they need global networks, and they need operational guidance to scale.

By opening its doors in Paris, the Asia-rooted firm is betting that the future of technology will not be dictated solely by the rivalry between Washington and Beijing, but by the bridges built between the East and a resurgent Europe. It is a calculated, multi-billion-dollar wager on the belief that innovation, ultimately, routes around geopolitical roadblocks to find the capital it needs to thrive.