Advertisement
Venture-capital funding in China falls to pandemic-era lows in weak 2024 start, with AI, EVs, clean energy as exceptions
- Total venture-capital investment in China in the first quarter fell 30 per cent quarter on quarter to US$11.5 billion
- China still leads Asia’s VC landscape, with eight of the 10 biggest deals in the first three months of the year
Reading Time:3 minutes
Why you can trust SCMP
4
Venture capital (VC) investment in China had a disappointing start to the year as overall investment fell to levels not seen since early in the Covid-19 pandemic, with the AI, electric vehicle (EV) and clean energy sectors among the few defying the gloom.
Advertisement
China continued to dominate Asia’s funding landscape in the first quarter, securing eight of the continent’s 10 biggest deals – most notably Moonshot AI’s blockbuster US$1 billion deal in February.
However, overall VC investment in the country fell 30 per cent quarter on quarter to US$11.5 billion, according to a report released on Tuesday by KPMG on the global VC market.
The figure, the lowest since the first quarter of 2020, was “striking”, according to the professional services firm, even after accounting for how the first quarter tends to be slow in China because of the Lunar New Year festive season and companies putting off big decisions until after the end of the financial year.
Globally, “market challenges – including the lack of exits, high interest rates, and continued geopolitical uncertainties – kept VC investors cautious”, the report said.
Advertisement
Advertisement