Gobi Partners may become a victim of the success of the venture capital market in China. Launched in the year after the Internet bubble burst, the Shanghai-based VC firm has finally been enjoying lush inflows following the rather dry spell that marked its early years. But, The Wall Street Journal reports, VC activity has changed dramatically in the Mainland, and with more than US$4 billion in venture capital raised last year – a 500% increase from the three previous years' averages – more and more VC firms are popping up, and threatening to take a bite out of Gobi's profit-making. Until the latest round of competitors emerged, co-founder Thomas Tsao told the Journal, "We had a lot more time to think," but now it appears that, in order to compete, Gobi, like its rivals, must jump in first and ask questions later. Gobi still may have a major advantage over some newcomers: The firm's three partners, a trio of alumni from the WI Harper Group of San Francisco, all speak Chinese – and that could be invaluable in negotiations with the locals.