• Funding value up despite decline in volume
• US and UK register decline in funding value
• Big-ticket deals drive overall funding value in China

China’s venture capital (VC) landscape witnessed a nuanced trend during January-April 2024, with a slight decline of 8.6% in deal volume compared to the previous year, contrasted by a notable 35.4% increase in funding value. Despite global declines in funding value in major markets like the US and the UK, China stood out with significant funding announcements, solidifying its position as a leading player in both the Asia-Pacific region and the global VC market, says GlobalData a leading data and analytics company.

An analysis of GlobalData’s Deals Database reveals that a total of 995 VC funding deals were announced in China during January-April 2024 compared to the 1,089 VC deals announced during the same period previous year. However, despite the decline, the corresponding funding value increased from $12.2 billion to $16.5 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “China saw the announcement of some big-ticket VC deals during the review period, which drove the growth in terms of value. What makes the growth more significant is the fact that it comes at the time when its peers such as the US and the UK registered decline in funding value during the review period.”

Reportedly, the VC funding value for the US and the UK market YoY declined by 28.7% and 32.8%, respectively, during January-April 2024.

Some of the notable venture funding deals announced in China during January to April 2024 include $1.5 billion raised by Changxin Technology Group, $1.1 billion raised by IM Motors, $1 billion raised by Moonshot AI, and $933 million raised by Shanghai Spacecom Satellite Technology.

China accounted for 18.3% of the total number of VC deals announced globally during January-April 2024 while its share of the corresponding funding value stood at 21.9%.

Bose concludes: “China showcases resilience and dynamism amidst global economic uncertainties. Despite a slight decline in deal volume, the significant increase in funding value underscores the robustness of China’s innovation ecosystem. With notable funding announcements and share in the global VC market, China continues to assert its dominance.”

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.