VC Funding in China Falls 22.5% in Jan-Nov, While India Sees Significant Surge

As venture capital (VC) funding surged in India this year, China witnessed a 22.5% decline in VC funding by volume and value in the period of January-November.

According to a report by GlobalData, a leading data and analytics company, on Thursday, a total of 2,313 VC funding deals were announced in China during January-November 2024 while the total disclosed funding value of those deals stood at $32.3 billion.

This means a year-on-year (YoY) drop of 23.1 per cent in VC deal volume while the total disclosed funding value decreased by 22.5 per cent, based on data and analytics company GlobalData.

Last year, in the same period, 3,006 VC deals were announced in China and the total disclosed funding value of those deals was $41.7 billion.

VC funding activity in China has remained subdued in 2024, says Aurojyoti Bose, lead analyst at GlobalData, with investor sentiments appearing to have taken a hit on the back of a crackdown on companies, macroeconomic challenges, and uncertain market conditions.

“However, despite the decline, China, apart from being the top APAC market for VC funding activity, also continues to be a key global market, standing just next to the US both in terms of deal volume and value,” Bopse mentioned.

China accounted for a 15.2 per cent share of the total number of VC deals announced globally during January-November 2024 while its share in terms of the corresponding funding value stood at 13.6 per cent.

Among the notable VC funding deals included Changxin Technology raising $1.5 billion worth of funding, AVATR raising $1.4 billion, IM Motors securing $1.1 billion worth of funding, and Moonshot AI receiving $1 billion funding, among others.

Meanwhile, VC investment in India had surged by a huge margin to $4 billion in the April-June period, or Q2 2024, from $2.9 billion in the previous quarter. Meanwhile, China saw a steep fall in VC investment, plummeting from $13.5 billion to $6.9 billion in the same period.

VC investment is expected to pick up further in India, supported by a stable government and positive economic environment in the country, according to a recent report from KPMG.