Venture capital (VC) funding activity suffered setbacks globally during 2023, and China also experienced a decline in deal volume as well as value but showcased relative resilience compared to its peers.
A total of 3,220 VC funding deals were announced in China in 2023 while the disclosed funding value of these deals stood at $42.6 billion. This represents a decline of 16.6% in terms of volume and 27.4% in terms of value compared to 2022, according to GlobalData.
According to an analysis of GlobalData’s Deals Database, China saw the announcement of 3,860 VC deals during 2022 whereas the disclosed funding value of these deals stood at $58.7 billion. While China also registered a drop in VC funding activity, the impact on funding activity was significantly higher for peer countries such as the US, the UK, and India.
For instance, the US, the UK, and India saw respective VC funding deals volume decline by 43.5%, 28.4%, and 37.9% in 2023 compared to the previous year. Meanwhile, the decline in the disclosed funding value for these markets stood at 45.6%, 39.4%, and 63%, respectively.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “China’s showcasing of relative resilience in challenging market conditions is indicative of the confidence that VC firms continue to have in the country’s startup ecosystem. Apart from being the top APAC market for VC funding activity, China also remains a key global market, standing just next to the US in terms of both deals volume and value.”
China accounted for 16.5% of the total number of VC funding deals announced globally in 2023, while its share of the disclosed funding value stood at 18.2%.
Bose adds: “It is also noteworthy that four of the 10 billion-dollar VC funding deals* announced globally during 2023 were raised by Chinese startups.”
Some of the notable VC funding deals announced in China during 2023 included $2 billion worth of funding raised by Changxin Xinqiao, $1.8 billion raised by GTA Semiconductor, $1 billion worth of funding secured by ROX Motor Tech, and $1 billion in funding received by Envision Group.
