VC funding in China dips 46% in 2022: GlobalData

Venture capital (VC) investment in China startups has plummeted 46.4 percent in 2022 to $57.4 billion in 2022 from $107 billion in 2021, according to GlobalData research.
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VC financing deal volume in China fell by 14.4 percent from 4,388 in 2021 to 3,755 in 2022.

China’s regulatory crackdown on tech companies, coupled with stringent zero-COVID policy has dented investor confidence in the country’s startups.

China is still the top Asia-Pacific market and is also among the top four markets globally in terms of VC fundings deal volume as well as value. China accounted for 14.1 percent and 13.6 percent share of global VC funding value and volume, respectively, in 2022.

“While all the top four markets (the US, China, the UK and India) registered decline in VC funding value, China experienced the highest decline,” Aurojyoti Bose, Lead Analyst at GlobalData, said.

The average size of VC funding deals in China decreased from $24.4 million in 2021 to $15.3 million in 2022.

VC funding value in other key global markets such as the US, the UK and India fell by 40.8 percent, 24.3 percent and 38.2 percent, respectively, in 2022 compared to the previous year.