Israeli Prime Minister Benjamin Netanyahu and Deputy Prime Minister of China, Liu Yandong, two years ago at the opening of the Israel-China Innovation Conference in the Foreign Ministry in Jerusalem, on March 29, 2016. Photo: Haim Zach/GPO.

CTech – The US-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.

Fisher spoke Tuesday about China, growth opportunities for startups, and the pros and cons of going public at 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 several factors are needed to succeed as a public company, such as having a growth rate of more than 30 percent and 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, which began trading on NYSE Thursday.