China reported a total of 251 venture capital (VC) funding deals, amassing a disclosed value of $2.6 billion, indicating a year-on-year decline of 8.4% in deal volume and 31.4% in value, in January, GlobalData, a prominent data and analytics company, revealed.
This downturn contrasts with the previous year’s January, where 274 VC deals worth $3.8 billion were recorded.
Despite this contraction, Aurojyoti Bose, Lead Analyst at GlobalData, noted China’s VC activity demonstrates a comparatively minor setback, especially when juxtaposed with other leading global markets. “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,” Bose commented.
Significant declines were observed in major markets such as the US, the UK, and India, where VC deal volume plummeted by 61.2%, 40.2%, and 30.0%, respectively, in January 2024 compared to the same period last year. The decline in deal value for these regions stood at 37%, 41.3%, and 50.3%, respectively.
China not only leads the Asia-Pacific (APAC) region but also stands as a crucial player in the global VC funding arena, trailing only behind the United States in terms of deal volume and value. The country contributed to 22% of the global VC deal volume and held an 18.6% share in the disclosed deal value for January 2024.
Among the noteworthy VC funding activities last month in China were significant investments in Qiyuan Core Power Technology, Ji Xing Pharma, and Chunqing Technology, securing $210.8 million, $162 million, and $100 million, respectively.
Bose further elaborated on China’s standing in the global venture capital market: “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.” – PEVCJournal.com