The next goldmine? venture capitalists on the lookout for Chinese tech start-ups

When technology investor Zhou Wei was looking for mainland start-ups to back, he was "100 per cent" certain that innovative online mobile and finance companies would overtake traditional peers to emerge as future stars.

"Internet is breaking all kinds of boundaries and increasing transparency," Zhou said, when asked on the kind of companies he likes to put his money on.

Based in Beijing, Zhou, a former head of a payment company who became a venture capitalist, believes the next drivers of the mainland's highly fragmented technology sector will be young professionals with solid industry background rather than freshly minted management students with little real-life experience.

"I try to think and act like the new generation of entrepreneurs who are in their mid-20s, or the so-called post-90s group, because they know what's going to be popular and click," Zhou said. "I even go out drinking with them at times to understand their lifestyle and preferences."

Alibaba Group Holding's US$25 billion initial public offering in New York has rekindled the interest of venture capital firms in Chinese technology companies.

But even with the potential of ultra-high returns, many investors acknowledge that the valuations of technology start-ups are testing new highs since the dotcom bubble burst in 2000. The sector, however, is increasingly drawing the attention of moneybags because of the prospects in mobile and online shopping and lending businesses.