China VC funding activity sees YoY decline

Yasmine Raso

Senior Journalist, Financial Newswire

27 February 2023

New figures from GlobalData have revealed Chinese venture capital (VC) funding volume dropped by 31.7 per cent in January when compared to the previous month, recording a year-on-year (YoY) loss of 36.5 per cent.

There were 237 VC deals worth $2.9 billion announced in January, falling by 32.9 per cent in terms of value when compared to December 2022 and seeing a YoY drop of 62.4 per cent.

GlobalData said these trends aligned with those seen in other major global markets for VC funding activity such as the United States, with China accounting for 16.8 per cent of the total number of global VC funding deals and 20.6 per cent of total value in January.

“China is a key market for VC funding activity in the Asia-Pacific (APAC) region and this decline is in line with the global trend,” Aurojyoti Bose, Lead Analyst at GlobalData, said.

“Other key global markets such as the US and the UK also experienced MoM as well as YoY decline in VC funding activity.”

The analytics firm also noted several Chinese cross-industry VC funding deals declared in January including $295.1 million funding raised by Anhui Huasun Energy, $218 million funding raised by BioRay Pharma, $177 million worth of funding raised by Yuze Semiconductor and $107 million funding raised by HighTide Therapeutics.