VC funding of startups in China plummet 26.9% 11M’23

Unconducive market conditions further drove its decline.

China startups witnessed a 26.9% YoY drop in venture capital (VC) funding to $39.7b in the eleven months to November, revealed GlobalData.

“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.

There were a total of 2,972 VC funding deals during the period. This represents a 15.3% YoY drop in deal volume and a 26.9% decline in deal value compared to the corresponding period in the previous year.

An analysis of GlobalData’s Financial Deals Database reveals that China saw the announcement of 3,507 VC deals worth $54.3b in the period.

For instance, the VC funding deal volume in the US, the UK, and India YoY declined by 42%, 26.9%, and 38.4%, respectively, during January-November 2023. 

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The decline in the disclosed funding value for these markets was relatively higher at 44.1%, 40.5%, and 65.8%, respectively.

“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.” Bose said.

China accounted for 16.1% of the total number of VC deals announced globally during 11M’23, whereas its share of the corresponding disclosed funding value stood at 17.9%.