Chuck Russell hasn't done too badly attracting investment for his firm, Orbital Traction, which makes a device that makes diesel engines more efficient. But he hasn't done as well as he'd like at his factory on the Sam Houston Tollway, finding it tough to convince U.S. venture capitalists to look for promising companies beyond their hubs in San Francisco, Boston and New York.

That's why Russell, Orbital's chief operating officer, found himself pitching his firm last week to hundreds of Chinese businesspeople and government officials in Houston, looking for an infusion of cash to help his company commercialize its technology for larger trucking fleets. Russell said his company, which employs seven, could hire more engineers and machinists to ramp up production and tap into vast transportation markets in China and the United States - if he could raise another $20 million.

"They're so focused on biotech, the digital revolution and health care," Russell said of U.S. venture firms. "Broadening the net to China seems like the right thing to be doing."

Russell was among the 200 entrepreneurs trying to connect with Chinese investors at the inaugural U.S.-China Innovation and Investment Summit, a conference organized by local investors, economic development groups and public agencies with the goal of increasing the flow of funding to local technology firms. Of the $13.7 billion in venture capital invested in U.S. firms in the first quarter of 2016, only $592 million went to Texas companies, according to Thomson Reuters.

More Information U.S. tech deals involving Chinese investors, 2010-16 State No. of deals California 281 New York31 Massachusetts15 Texas11 Washington7 Georgia4 Illinois3 D.C. 3 Florida3

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China is viewed as a potentially rich source of venture capital after a decadelong boom that created billions of dollars in wealth, and a recent economic slowdown that is roiling the Chinese markets and driving Chinese investors to seek safer havens for their money. China, for example, became the largest foreign buyer of U.S. real estate in 2015, with its investors holding $350 billion in properties, according to a recent report by the nonprofit Asia Society and Rosen Consulting Group, a California firm.

"A lot of the wealth that has been developed there is looking for opportunities for investment," says Bernard Harris, CEO of Vesalius Ventures, a Houston-based investment firm that focuses on early to mid-stage medical technology companies. "What we're trying to do is let investors know that there is a number of tech companies right here in the Gulf area that they need to be looking at."

Faster pace

Chinese companies, state-owned entities and wealthy individuals began investing in Texas about a decade ago. But the pace of investment has accelerated in recent years, and the focus of those investments has shifted. Between 2010 and 2015, Chinese investors poured nearly $12 billion into Texas enterprises, including projects such as the $1.1 billion Tianjin Pipe Co. manufacturing facility in Gregory, according to a 2015 report from the office of Gov. Greg Abbott.

At the same time, Chinese investors have moved beyond their focus on real estate and established firms to consider emerging companies in a variety of innovation sectors. Last week, for example, the Chinese wind turbine maker Goldwind bought the 160-megawatt Rattlesnake Wind Project, a wind farm about 125 miles northwest of Austin that is still under development. Terms of the deal were not disclosed.

"In the past, Chinese companies preferred more tangible companies, like hotels," says James Chen, the state's international business development director. "But as more and more Chinese students studied here and went back to China, investors learned that the more important business opportunities lie in other sectors, like high tech."

Houston visit

During the Houston summit, Chinese visitors were shuttled to technology incubators like the Houston Technology Center, home to several dozen young tech firms, and TMCx, the Texas Medical Center's home for medical startups. Conference coordinators also facilitated dozens of meetings between early stage companies and potentially interested investors

Katrina Alvarado is the co-founder of a Houston-based startup called Trucker District, which makes communications systems for trucking companies. She and her husband have bootstrapped the company so far but are seeking outside investors to help them get off the ground. After pitching the concept, she didn't lock down any funding commitments.

But she figured the stack of business cards she gathered might bear fruit down the road.

"We are hopeful that the discussions moving forward will be really good," Alvarado said.

At the summit, Chinese businessmen and officials said they were drawn to Texas by its burgeoning population, strong technology and manufacturing sectors and unqualified openness to investment. Texas ranks fourth among states in the number of deals involving tech startups that were funded by Chinese investors in recent years.

Of the 380 reported since 2010, 281 were in California, and 11 in Texas, according to the New York City-based research firm, CBInsights. New York had 31 and Massachusetts 15.

"We're looking into fast-growing and profitable opportunities," said Zhijun Yang, who as former managing director of Shuanghui International led the multibillion-dollar acquisition of the pork producer Smithfield Foods. He is now chairman of the Greenland Fund, a private investment fund.

In the short term, Chinese funding deals might get more difficult. Although Chinese Communist Party officials attended the summit and expressed hope it would lead to increased collaboration and investment, Thilo Hanemann, economist at a New York research firm Rhodium Group, said he has heard that the Chinese government is getting nervous about the amount of capital flowing out of the country.

"We're seeing a bit of a schizophrenic attitude in recent months," Hanemann says. "They support outbound investments, but there's a more cautious stance."

In a more restrictive environment for Chinese investors, it may be easier for American startups to partner with Chinese businesses by starting some operations in China, so money doesn't have to cross borders. Down the line, if capital becomes more mobile, Texas could be positioning itself to capture that investment.

"Our understanding of Houston is lacking compared to the East and West coast," said Li Qiangmin, consul-general of the People's Republic of China in Houston. "But this is important land. Texas citizens have really opened their arms."