China’s venture capital (VC) market has faced a significant downturn, with total funding value dropping by 12.6% year-on-year from January to August 2024, as reported by GlobalData. The total number of VC funding deals reached 1,761, reflecting an 18.5% decrease in deal volume compared to the same period last year.
The total funding amount for these deals was $23.3 billion, a decline from the $26.7 billion raised through 2,161 disclosed VC deals in the first eight months of 2023. This downturn can be attributed to a reduction in high-value VC transactions during the review period.
Despite retaining its position as the leading VC funding market globally, following the United States, the decline in China’s total funding value is concerning, particularly as its international peers—including the US, UK, and India—experienced growth. Aurojyoti Bose, lead analyst at GlobalData, noted that while China remains a dominant player, the drop in funding raises red flags.
In stark contrast, the US recorded a modest 1.9% increase in VC funding value, while the UK and India saw more substantial growths of 14.8% and 53.1%, respectively. During the reviewed period, China accounted for 16.4% of the total number of VC deals announced globally and held a 14.3% share of the total funding value.
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