In the first half (H1) of 2025, the venture capital (VC) funding landscape in China has experienced a notable downturn. The total number of VC deals announced in China declined by around 6% in H1 2025 compared to H1 2024. The situation is even more pronounced in terms of deal value, with China experienced a staggering year-on-year (YoY) decline of around 45% to $10.8 billion, according to GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While China’s VC funding was able to breach the $10 billion mark by the end of H1 2025, it is noteworthy that it took only 3 months to hit that level in 2024. This downturn could be attributed to several factors, including regulatory changes, economic uncertainties, and a more cautious investment climate. However, recent data indicates that China continues to be a key player in the global VC arena, standing just next to the US, albeit with diminishing momentum.”

China’s share in global deal volume also fell from 16.4% in H1 2024 to 16.1% in H1 2025. However, the sharp decline in deal value has led to a significant decrease in its share of global deal value, dropping from 15.7% in H1 2024 to 6.3% in H1 2025.

This shift highlights a challenging environment for Chinese startups and investors alike, as competition intensifies in the ever-evolving global VC landscape. In comparison, other countries, such as the US, which has seen VC funding value surge by 87% in H1 2025 compared to H1 2024, the divergence highlights the competitive landscape of global VC funding, where investors are increasingly looking for markets with promising opportunities.

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