China drives Asia’s venture capital market with 6 of the top 10 quarterly deals: KPMG
- A total of 2,155 venture-capital deals worth US$17.4 billion were finalised in the Asia-Pacific region in the year’s second quarter, according to a KPMG report
China dominated Asia’s subdued venture capital scene in the second quarter, as state-backed investors poured money into sectors such as artificial intelligence (AI), electric vehicles (EV) and semiconductors to bolster the nation’s technological prowess.
China accounted for six of the top 10 venture-capital investments in the Asia-Pacific region, according to a report published by KPMG on Thursday. A total of 2,155 deals worth US$17.4 billion were reached in the three months to June. The deal volume, however, was 16.3 per cent lower than the previous quarter.
New energy vehicles and semiconductors were among the hottest sectors in China. EV maker Neta Auto raised US$693 million, while CRRC Times Semiconductor scooped up US$599 million, according to the report.
AI companies continue to gain traction in China, even as investors tread cautiously. Top deals in this space include US$528.7 million raised by Zunyuan Supermarket, a retailer that incorporates AI followed by generative AI company Zhipu AI at US$400 million.
“The AI space continued to attract strong venture capital investment in China during the second quarter of the year, with investors showing particular interest in AI-driven applications,” said Zoe Shi, partner at KPMG China.
The number of AI focused start-ups has “grown considerably” over the past year, and the big question now is which of these companies will be able to produce results and successfully commercialise their offerings, she added.
