Start-ups in China raised US$6 billion in venture capital across 458 deals in January-February 2023, down 52.2% in value and 29.1% in volume from the same period last year, figures from data and analytics provider GlobalData reveal.

“China ranked among the top five markets globally in terms of both VC funding deal volume and value during [the period],” says lead analyst Aurojyoti Bose.

“Akin to the trend witnessed in the other key global markets, investor cautiousness prevailed in China as well, which reflects in the subdued VC funding activity in the country. However, the decline is relatively lesser compared to the other key global markets.”

For instance, the United States, the United Kingdom and India saw VC funding deal volume year-on-year falling by 52.1%, 38.1% and 56.3%, respectively, while the decline in terms of value in these markets stood at 72.3%, 70.1% and 80.8%, respectively.

China accounted for 15.3% share of the number of VC deals announced globally during the period, while the country’s share by value stood at 19%.

“Despite the subdued activity, China continues to be the top Asia-Pacific market for VC funding activity,” Bose says. “Moreover, it is also the second biggest market globally and stands just next to the US in terms of VC funding volume as well as value.”