Chinese startups suffer funding drop

Chinese startups have seen a year-on-year (YoY) drop in both venture capital (VC) funding deal volume and value from January to November 2023, according to GlobalData.

Figures from the data and analytics company showed VC funding deals amounted to $39.7 billion during the period, accounting for a 15.3 per cent YoY fall in volume and a 26.9 per cent fall in value compared to the previous period.

January to November 2022 saw 3,507 VC deals closed worth $54.3 billion, according to GlobalData’s Financial Deals Database.

“Akin to the global trend and in line with several other key markets, China witnessed decline in VC funding activity due to unconducive market conditions. However, the decline in China was relatively lesser compared to the decline in VC funding activity experienced across several of other countries,” Aurojyoti Bose, Lead Analyst at GlobalData, said.

“China continues to remain a key market for VC funding activity. Apart from being the top APAC market, it also remains a key global market for VC funding activity standing just next to the US in terms of both deals volume value.”

In the same 2023 period, VC funding deal volume fell by 42 per cent in the US, 26.9 per cent in the UK and 38.4 per cent in India; deal value had a higher rate of decline at 44.1 per cent, 40.5 per cent and 65.8 per cent, respectively.

Chinese VC deals accounted for 16.1 per cent of total global funding volume in the assessed period, while its share of the related funding value was 17.9 per cent.