VC funding in China startups down by 52.2% YoY during Jan-Feb 2023

Venture capital (VC) funding activity by startups in China registered decline both in terms of volume as well as value during January-February 2023 compared to the same period in previous year amid the challenging market conditions. VC deal volume in China declined by 29.1% while the corresponding deal value declined by 52.2%, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that China-based startups raised $6 billion worth of funding across a total of 458 venture capital (VC) financing deals announced during January and February 2023

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “China ranked among the top five markets globally in terms of both VC funding deal volume and value during January-February 2023. Akin to the trend witnessed in the other key global markets, investor cautiousness prevailed in China as well, which reflects in the subdued VC funding activity in the country. However, the decline is relatively lesser compared to the other key global markets.”

For instance, the US, the UK and India saw VC funding deal volume year-on-year falling by 52.1%, 38.1% and 56.3%, respectively, while the decline in terms of value in these markets stood at 72.3%, 70.1% and 80.8%, respectively.


China accounted for 15.3% share of the number of VC deals announced globally during January and February 2023 while the country’s share by value stood at 19%.

Bose concludes: “Despite the subdued activity, China continues to be the top Asia-Pacific market for VC funding activity. Moreover, it is also the second biggest market globally and stands just next to the US in terms of VC funding volume as well as value.”

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.

Also read: APAC deal activity down by 42.2% YoY in Feb 2023

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