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China’s venture capital market on the rise

  • China Venture Capital

PitchBook is a financial data and software company, providing thousands of global business professionals with comprehensive data on the private and public markets. On March 2019 the company released a report entitled Venture Capital in China, which provides an overview and analysis of trends shaping Chinese VC activity.

The company’s analysis states that China has officially become in 2018 the second recipient of VC with nearly 30 percent of the total of global VCs. Better, this trend should increase, and the Chinese VC market should gain in prominence.

This incredible spike in VC activity truly started in 2013, when the Chinese government undertook massive initiatives aiming to boost the Chinese entrepreneurial ecosystem.
These initiatives included a massive technology incubator named Torch, seed funding (Innofund), and a series of funds-of-funds (FoFs).

Torch notably established a high-tech innovation zones across the country composed of science and technology industrial parks, productivity promotion centres and technology business incubators.
This flourishing ecosystem coupled to the Chinese rapid economic growth made of China a major place for tech-start-ups and VC activity, providing important opportunities of B2B cooperations.

However, that situation could be at risk : the Chinese government’s interference may make the environment opaque a jeopardize the future foreign investment in local start-ups.

More information about VC in China on the following page.