China’s venture capital (VC) landscape showcased a mixed picture in 2025, with invested capital contracting even as deal volume increased. The total number VC deals announced in China increased by around 16% in 2025 compared to the previous year, while the corresponding funding value decreased by around 17%, according to GlobalData, a leading intelligence and productivity platform.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although China’s performance stands out against a global backdrop in which overall VC deal volume fell by 3% year-on-year, the country’s decline in funding value highlights continued investor caution, tighter pricing discipline, and a shift toward smaller checks and more selective capital deployment. It is also noteworthy that global VC deal value expanded by around 31% YoY in 2025 mainly driven by the US.”

An analysis of GlobalData’s Financial Deals Database revealed that the trend remained uneven across other leading VC markets. The US posted broadly flat deal volume but recorded a sharp increase in deal value (up 53% YoY). The UK market witnessed VC deal volume and value declining by around 17% and 3%, respectively, whereas India registered growth in both deal volume and volume by 11% and 10%, respectively.

Bose adds: “China’s 2025 VC activity suggests a recalibration rather than a retreat. Investors appear willing to back innovation, albeit cautiously. This environment typically favors startups with clear paths to scale and profitability.”

Some of the notable VC funding deals announced in China during 2025 include $1.6 billion raised by China Fusion Energy, $874 million secured by Deepal, $700 million raised by SJ Semiconductor, $600 million secured by Neolix, and $500 million raised by Moonshot AI, among others.

China continues to be the top APAC market and is also among the top markets globally standing next to the US in terms of both VC deal volume and value.  It accounted for an 18% share of the total number of VC deals announced globally in 2025, up from a 15% share in the previous year. Meanwhile, its share of global deal value fell from around 13% in 2024 to around 8% in 2025.

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