In January 2024, China saw the announcement of 251 venture capital (VC) funding deals, with a disclosed funding value of $2.6 billion, marking a decline of 8.4% in deal volume and 31.4% in funding value compared to the same period last year, according to GlobalData, a prominent data and analytics company.
The trend continued into the following month, with 416 VC funding deals amounting to $6.4 billion in February 2024. According to GlobalData’s analysis of its Deals Database, this represents a decrease of 18.9% in deal volume and 4.9% in funding value compared to the corresponding period in 2023.
Aurojyoti Bose, Lead Analyst at GlobalData, noted that despite the subdued funding activity in China, the country demonstrated relative resilience compared to other major global markets. In January 2024, while China experienced an 8.4% decline in VC deal volume and a 31.4% decline in funding value year-on-year, key markets like the US, the UK, and India witnessed more substantial drops in both deal volume and funding value.
Furthermore, Bose highlighted that the year-on-year decline in funding value in China was relatively less pronounced compared to the decline in deal volume during January- February 2024.
This observation is underlined by the month-on-month growth in funding value experienced in February, where China saw a significant 12.8% increase. Notably, February 2024 announced China’s first billion-dollar funding deal of the year, with a resurgence in investment activity.
Among the VC funding deals in February were Moonshot AI, raising $1 billion; Shanghai Spacecom Satellite Technology, securing $933 million; and Shenzhen Jinming Industrial, obtaining $140 million in funding.
Bose highlights China’s importance as a leading Asia-Pacific market and a key player in the global venture capital landscape. China is second only to the US in both deal volume and value. In January 2024, China accounted for 22% of the total number of VC funding deals globally, with its share of disclosed deal value reaching 18.6%.
Notable funding rounds in China during this period include Qiyuan Core Power Technology securing $210.8 million, Ji Xing Pharma raising $162 million, and Chunqing Technology obtaining $100 million.
Looking at the broader picture, China maintained its strong position in VC funding during January-February 2024, accounting for 18% of the total global VC deals and 18.9% of the disclosed funding value.
The country also witnessed the emergence of five unicorns within its borders during the first two months of the year. Bose concludes that despite fluctuations in deal volume, China’s steady growth in funding value and the rise of unicorns show the resilience and vibrancy of its entrepreneurial ecosystem amid market dynamics.
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