China’s venture capital (VC) market experienced a noticeable decline in January, with a total of 251 VC funding deals amounting to $2.6 billion, according to the latest analysis by GlobalData, a premier data and analytics firm.
This represents an 8.4% decrease in deal volume and a 31.4% reduction in deal value year-on-year (YoY), compared to 274 deals totaling $3.8 billion in January 2023.
Despite this downturn, China’s performance in the VC funding arena has shown relative resilience when compared to other leading global markets.
For example, in January 2024, the United States, the United Kingdom, and India witnessed more significant declines in VC deal volume, dropping by 61.2%, 40.2%, and 30.0% respectively, from the same period last year.
Additionally, the decline in deal value for these countries was marked at 37%, 41.3%, and 50.3%, respectively.
Aurojyoti Bose, Lead Analyst at GlobalData, emphasized China’s standing as a pivotal market for VC funding activity, ranking just behind the US in terms of both deal volume and value.
In January 2024, China accounted for a 22% share of the global number of VC funding deals and an 18.6% share of the disclosed deal value.
Among the prominent VC funding rounds in China during this period were significant investments in Qiyuan Core Power Technology, which raised $210.8 million, Ji Xing Pharma with $162 million, and Chunqing Technology, securing $100 million.
“China’s relative resilience in the venture capital market underscores its enduring appeal and position as a key player on the global stage,” Bose stated.
He highlighted the country’s continued attraction of significant investments as a testament to the confidence in its innovation ecosystem and the prospects for long-term growth.
