Despite the decline China VC remains a force in global market
The China venture capital (VC) funding landscape experienced a decline in both deal volume and value during January to May 2023 compared to the previous year, attributed to geopolitical tensions and recession concerns. However, China remains a dominant player in the Asia-Pacific (APAC) region and globally, showcasing its continued significance in VC funding activities, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database revealed that 1,310 VC funding deals of worth $US15 billion were announced in the China during January to May 2023, a year-on-year (YoY) 18.1 per cent decline compared to 1,599 VC deals announced in January to May 2022. The corresponding disclosed value of these deals also declined by 37.5 per cent YoY from $US24 billion to $US15 billion.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Geopolitical tensions and recession fears seem to have had a dent in deal-making sentiments in China. However, despite the decline, China continues to remain the top APAC market as well as one of the top five markets globally for VC funding activity both in terms of deals volume and value.”
China accounted for 14.4 per cent share of the total number of VC deals announced globally during January to May 2023 while its share of the corresponding deal value stood at 14.3 per cent.
Meanwhile, it accounted for 46.7 per cent share of the total number of VC deals announced in the APAC region during January to May 2023 while its share of the corresponding deal value stood much higher at 57.6 per cent.
Some of the notable VC funding deals announced in China during January to May 2023 included $US750 million secured by Zeekr, $US375 million fundraising by Libode, $US340 million raised by SJSemi, $US321 million fundraising by Yunnan National Titanium Metal, and $US300 million worth of funding raised by JD Industry.
Bose concludes: “Despite the challenges, China’s innovation ecosystem remains a compelling destination for venture capital funding. The notable funding deals during this period highlight the ongoing investment interest in China’s innovative and promising start-ups, indicating the potential for future growth and opportunities in the country’s entrepreneurial landscape.”
Tags: China VCGlobalData
