China witnessed the announcement of 2,972 venture capital (VC) funding deals amounting to $39.7 billion from January to November 2023. This represents a 15.3% year-on-year (YoY) drop in deal volume and a 26.9% decline in deal value compared to the corresponding period in the previous year, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that China saw the announcement of 3,507 VC deals of worth $54.3 billion during January-November 2022.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Akin to the global trend and in line with several other key markets, China witnessed decline in VC funding activity due to unconducive market conditions. However, the decline in China was relatively lesser compared to the decline in VC funding activity experienced across several of other countries.”
For instance, the VC funding deal volume in the US, the UK, and India YoY declined by 42%, 26.9% and 38.4%, respectively, during January-November 2023. The decline in the disclosed funding value for these markets was relatively higher at 44.1%, 40.5% and 65.8%, respectively.
Bose adds: “China continues to remain a key market for VC funding activity. Apart from being the top APAC market, it also remains a key global market for VC funding activity standing just next to the US in terms of both deals volume value.”
China accounted for 16.1% of the total number of VC deals announced globally during January-November 2023, whereas its share of the corresponding disclosed funding value stood at 17.9%.
Some of the notable funding deals announced in China during January-November 2023 include $2 billion worth of funding raised by Changxin Xinqiao, $1.8 billion funding raised by GTA Semiconductor, $1 billion funding raised by ROX Motor Tech and $1 billion worth funding raised by Envision Group.
