TLDR:
- China’s VC funding deals declined by 18.9% YoY in terms of deal volume and 4.9% in funding value in early 2024.
- Despite the decline, China remains a key global market for VC funding and saw the creation of five unicorns in the first two months of 2024.
China experienced a year-over-year decline in venture capital (VC) funding deals during the first two months of 2024. GlobalData reported a total of 416 VC funding deals worth $6.4 billion, representing an 18.9% decrease in deal volume and a 4.9% decrease in funding value compared to the same period in 2023. Lead Analyst Aurojyoti Bose noted that while the decline in funding value was less significant than in deal volume, there was a month-on-month growth in funding value in February 2024.
Despite the decline, big-ticket VC funding deals in China, including those for Moonshot AI, Shanghai Spacecom Satellite Technology, and Shenzhen Jinming Industrial, highlighted the country’s attractiveness for investment. China accounted for 18% of global VC deals and 18.9% of disclosed funding value in early 2024, showcasing its position as a major player in the VC funding landscape.
Furthermore, China saw the emergence of five unicorns during the first two months of 2024, signaling the robust entrepreneurial ecosystem in the country. Bose emphasized that China’s sustained momentum in funding value and the presence of unicorns solidify its position as a powerhouse in VC funding, despite fluctuations in deal volume. As China continues to navigate dynamic market conditions, its status as a key global market for VC funding remains strong.
