TLDR:
- Capital Today, a top Chinese venture capital firm, has denied rumors of exiting the primary market, stating a focus on artificial intelligence (AI) investments.
- The VC market in China is facing challenges with deals drying up and government funds shifting focus to “hard tech” investments.
A top Chinese venture capital (VC) firm, Capital Today, known for successful investments in JD.com, Meituan, and NetEase, has dismissed rumors of pulling back from venture capital investments in the wake of a struggling market. Despite the challenges facing China’s VC market, with VC investor Wang Ran declaring it “dead,” Capital Today has actively sought deals in the field of artificial intelligence (AI).
The founder of Capital Today, Kathy Xu Xin, who has been dubbed “China’s venture capital queen,” has continued to focus on AI investments, with recent investments in start-ups like Stand AI and Moonshot AI. While Capital Today is still pursuing AI projects, sources indicate that the firm, along with other VC houses, is scaling down investments and shifting focus to the secondary market rather than primary market deals.
Although there have been no recent layoffs, some staff members have left earlier in the year, with only a few remaining on the VC team. Despite this, Capital Today remains active in the AI sector, investing in companies like Moonshot AI, Zhipu AI, and Guangnian Zhiwai. The overall IPO market in China has seen a significant decline, with only 82 firms going public in the first half of 2024, raising a total of US$6.5 billion, down 79% from the previous year.
