TLDR:
China dominated Asia’s venture capital market in the second quarter with 6 of the top 10 deals, totaling 2,155 deals worth US$17.4 billion. State-backed investors focused on AI, EV, and semiconductors. EV maker Neta Auto raised US$693 million and AI companies like Zunyuan Supermarket and Zhipu AI also secured significant investments. China is heavily investing in strategic sectors like semiconductor and AI to compete with the US. Deal activity remains slow, but IPO market could see a rebound in 2025.
Full Article:
China dominated Asia’s subdued venture capital scene in the second quarter, with state-backed investors pouring money into sectors like artificial intelligence (AI), electric vehicles (EV), and semiconductors to boost technological prowess. China accounted for six of the top 10 venture capital investments in the Asia-Pacific region, with a total of 2,155 deals worth US$17.4 billion. This represented a 16.3% decrease from the previous quarter.
New energy vehicles and semiconductors were among the hottest sectors in China during this period. EV maker Neta Auto secured US$693 million in funding, while CRRC Times Semiconductor received US$599 million. In the AI sector, Zunyuan Supermarket and Zhipu AI raised US$528.7 million and US$400 million, respectively.
China has been heavily investing in strategic sectors like semiconductors and AI as part of its technology war escalation with the US. Beijing recently set up a 344 billion yuan state-backed investment fund to support the semiconductor industry. Local authorities are also ramping up support for AI and other technology sectors to attract investors.
Looking forward, AI and EV are expected to continue dominating venture capital investments in China, supported by generous state funding. While deal activity remains slow, the IPO market could see a rebound in 2025 as Chinese companies prepare to go public.
