Venture capital funding in China drops by 26.8% to $28.2 billion –GlobalData

Joy Agwunobi

A total of 2,116 venture capital (VC) funding deals worth $28.2 billion were announced in China during January-October 2024. This represents a year-on-year (YoY) decline of 22.5 per cent in VC deal volume, whereas the total disclosed funding value fell by 26.8 per cent, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Deals Database revealed that during January-October 2023, China witnessed the announcement of a total of 2,731 VC deals with disclosed funding value of $38.5 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Crackdown on companies coupled with the ongoing conflicts, uncertain market conditions and economic challenges have weighed heavily on investor sentiment. This can also be understood from the fact that China witnessed a decline in the number of big-ticket deals during January-October 2024 compared to January-October 2023.”

The number of VC deals valued more than or equal to $100 million announced in China decreased from 70 during January-October 2023 to 50 during January-October 2024.

Bose adds: “However, despite this downturn, China has maintained a substantial presence in the global VC landscape standing just next to the US in terms of both deal volume and value.”

China accounted for 15.4 per cent share of the total number of VC deals announced globally during January-October 2024 while its share in terms of the corresponding funding value stood at 12.9 per cent.

Some of the notable VC funding deals announced in China during January-October 2024 included $1.5 billion worth funding raised by Changxin Technology, $1.4 billion of fundraising by AVATR, $1.1 billion worth of funding raised by IM Motors and $1 billion worth funding raised by Moonshot AI.

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.