New competition is coming in from sites backed by Web giants like Baidu, Sohu and Tencent, along with independents such as LeTV and peer-to-peer download sites like Xunlei and PPLive.

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Among the P2P video firms, PPStream and PPLive seem equally successful, and in classic Chinese competitive spirit PPLive is suing PPStream, accusing it of removing the PPLive software during a new PPStream upgrade install.

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Qiming Ventures has five Chinese portfolio companies in the cue to go public soon: ramped up car rental service eHi from Shanghai, dating site Jiayuan, online video programming PPLive, social networking service Kaixin001 and kids entertainment site Taomee.

FORBES: Just How Hot Is China Venture? Very!