A total of 2,417 venture capital (VC) funding deals were announced in China during the first three quarters (Q1-Q3) of 2023 while the disclosed funding value of these deals stood at $32.2 billion.
Meanwhile, both deal volume and value witnessed decline during Q1-Q3 2022 compared to Q1-Q3 2022, finds GlobalData.
An analysis of GlobalData’s Financial Deals Database reveals that the total number of VC funding deals declined by 16.7% during Q1-Q3 2023 compared to 2,901 during Q1-Q3 2022.
Meanwhile, the corresponding deals value registered a year-on-year (YoY) decline of 25.6% compared to $43.3 billion during Q1-Q3 2022.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although, the VC funding activity in China declined both in terms of volume and value, it cannot be seen as a country-specific phenomenon. As investor sentiments have taken a hit owing to the volatile market conditions, subdued VC funding activity is now a global trend and China is not an exception to this. Moreover, the decline in VC funding activity experienced in China was relatively lesser compared to its peers such as the US, the UK, and India.”
For instance, the VC funding deal volume in the US, the UK, and India dropped by 40.3%, 25.9%, and 42.3%, respectively, during Q1-Q3 2023 compared to the same period in the previous year.
The decline in the corresponding value for these markets was also relatively higher at 45.6%, 43.1% and 70.4%, respectively.
Bose adds: “China, apart from being the top APAC market, is also a key global market for VC funding activity and stood just next to the US in terms of deals volume as well as value.”
China accounted for 15.8% share of the total number of VC funding deals announced globally during Q1-Q3 2023. Meanwhile, its share of the corresponding deal value stood at 17.6%.
