China venture capital funding plunges amid slowing economy and weak global investor sentiment
- GlobalData figures represent a fall of 29.1 per cent in terms of deal value and a 15.7 per cent decline in the number of VC deals across the period
- Decline in VC deal activity follows several years of strict anti-pandemic curbs, a regulatory crackdown and rising geopolitical tensions
Venture capital (VC) funding in China in the first 10 months of 2023 declined nearly 30 per cent from the same period last year as economic uncertainties continue to weigh on investor appetite.
China saw US$34.6 billion invested across 2,675 venture capital funding deals from January to October this year, a “considerable decline” from the same period last year, according to a report published by data analytics firm GlobalData on Friday.
The data represents a fall of 29.1 per cent in terms of deal value and a 15.7 per cent decline in the number of VC deals across the period, according to GlobalData.
Some of China’s most notable transactions during this time include a US$1.8 billion state-led investment into GTA Semiconductor, an auto chip manufacturer, and a US$1 billion fundraising by electric vehicle maker Rox Motor Tech, GlobalData said.
In a report published earlier this week, Chinese research firm Zero2IPO Research found that the number of deals in the country in the first nine months across venture capital, private equity and other early stage investment firms dropped 25.9 per cent year on year.
China’s total value of private investments in the same period also plunged 31.8 per cent from last year, according to Zero2IPO.