TLDR:
– Start-up funding in China remains weak, but may see a recovery this year
– Amount raised in the first half of 2024 is already more than 50% of 2023’s total
In a report by the South China Morning Post, it was highlighted that funding for start-ups in China is currently at a low point. However, data from M&A intelligence provider Mergermarket suggests a potential recovery as the amount raised in the first half of 2024 is already more than 50% of 2023’s total. The peak funding amount in China was recorded at US$132.7 billion in 2021, dropping to US$67 billion in 2022 and US$45.4 billion in 2023. From January to June 2024, total start-up funding raised in China reached US$25.7 billion.
Despite the sluggish market compared to the pre-pandemic era, Yiqing Wang, managing editor at Mergermarket in Asia-Pacific, noted that there may be a slight recovery in funding in China this year after two years of decline since 2021. Another key trend highlighted was that dollar-denominated funds have played a significantly smaller role in the first half of 2024, accounting for only 2.5% of the total compared to 44% in 2021.
