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Treasury & Capital Markets
China sees drop in venture capital deals
Market stands next to US in terms deal volume and value despite decline in funding activity
The Asset 23 Feb 2024

Chinese start-ups raised US$2.6 billion in 251 venture capital (VC) deals in January 2024, representing a year-on-year decline of 8.4% in terms of volume and 31.6% in terms of value, according to data and analytics firm GlobalData.

A total of 274 VC deals valued at US$3.8 billion were announced in China in January 2023.

“Although China experienced subdued funding activity, the impact when seen in comparison with other key global markets seems relatively lesser, highlighting relative resilience showcased by the country,” says GlobalData lead analyst Aurojyoti Bose.

Key markets such as the United States, the United Kingdom and India saw VC deal volume fall by 61.2%, 40.2% and 30.0%, respectively, during the period, while the decline in value in these markets stood at 37%, 41.3% and 50.3%, respectively.

“It is noteworthy that China, apart from being the top Asia-Pacific market, is also a key global market for VC funding activity and stands just next to the US in terms of both deal volume and value,” Bose adds.

China accounted for 22% of the total number of VC funding deals announced globally in January 2024, while its share of the disclosed deal value stood at 18.6%.

Some of the notable VC deals announced in China during the period include US$210.8 million worth of funding raised by Qiyuan Core Power Technology, US$162 million secured by Ji Xing Pharma, and US$100 million raised by Chunqing Technology.

“China's relative resilience in the venture capital market underscores its enduring appeal and position as a key player on the global stage. Despite challenges, the country continues to attract significant investment, reflecting confidence in its innovation ecosystem and long-term growth prospects,” Bose notes.

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