Source: GlobalData
VC funding in China shrinks 21.7% to $35.2 billion in 2024, finds GlobalData
Posted in Business Fundamentals
A total of 2,537 venture capital (VC) funding deals were announced in China during 2024 while the total disclosed funding value of these deals stood at $35.2 billion. This represents a year-on-year (YoY) decline of 23.2% in VC deal volume, whereas the total disclosed funding value fell by 21.7% compared to the previous year, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that a total of 3,305 VC deals were announced in China during 2023 while the total disclosed funding value of these deals was $45 billion.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “There seems to be a severe dent in investor sentiment during 2024, which reflects in the decline in VC deal volume as well as value. Although it continues to be a key global market for VC funding activity, China’s share has been diminishing and it is more prominent in terms of value.”
China, which accounted for 16.6% of the total number of VC deals announced globally during 2023, accounted for 15.4% share of deal volume in 2024. Meanwhile, China saw its share of the total disclosed funding value fall from 18.9% in 2023 to 12.9% in 2024.
Bose adds: “The impact in terms of value can also be understood from that fact that China experienced a decline in the number of big-ticket deals announcement in 2024 compared to the previous year.”
For instance, the number of VC deals valued more than or equal to $100 million announced in China fell from 87 in 2023 to 63 in 2024.
Bose concludes: “The sharp decline in VC activity in China reflects a combination of waning investor confidence and broader economic uncertainties. The reduction in high-value deals further underscores the need for strategic recalibration, as investors increasingly seek opportunities in emerging sectors with higher growth potential.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.