China’s venture capital (VC) funding landscape in the first eight months of 2023 showed a significant slowdown compared to the same period in 2022, with 2,111 VC funding deals amounting to $26.8 billion. This marked an 18.3% drop in deal volume and a 30.1% decrease in disclosed funding value. While this decline aligned with global trends, China fared better than major markets like the US, the UK, and India, solidifying its status as a key player in the global VC landscape, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that 2,583 deals were announced in China during January-August 2022. The corresponding disclosed funding value of these deals was $38.4 billion.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although China recorded a decline in VC funding activity in line with the global trend, it was comparatively lesser compared to other key global markets.”
For instance, the US, which is the top global market by VC funding activity, witnessed an year-on-year (YoY) decline in deal value and volume of 47.4% and 38.3%, respectively, during January-August 2023.
Similarly, other key markets such as the UK and India also registered YoY decline of 27.2% and 42%, respectively, in VC funding deals volume during the period while the corresponding deal value fell by 52.6% and 71.5%, respectively.
Bose adds: “China stands as the leading market in the Asia-Pacific (APAC) region for VC funding activity, excelling both in deal volume and value. Additionally, it holds a prominent position in the global VC funding landscape, closely trailing the US in significance.”
China accounted for 15.2% of the total number of VC funding deals announced globally during January-August 2023 while its share of the corresponding deal value stood at 16.8%.
Some of the notable VC funding deals announced in China during January-August 2023 include $960.8 million raised by Zhejiang Hozon New Energy Automobile, $750 million secured by Zeekr, $623 million raised by Xiamen Hithium Storage Technology, $600 million secured by Farizon Auto, $411.5 million raised by AVATR, and $375 million fundraising by Libode.
Bose concludes: “To sum it up, the data underscores China’s resilience and global prominence as a pivotal player in the ever-evolving world of venture capital.”
