China's VC Funding Declines by 22.5% in January-November, While India Experiences Growth
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New Delhi, Dec 26 (NationPress) As venture capital (VC) funding flourished in India this year, China experienced a significant 22.5% decline in VC funding, both in terms of volume and value for the period from January to November, as reported on Thursday.
During this timeframe, a total of 2,313 VC funding deals were disclosed in China, with an overall disclosed funding value of $32.3 billion, according to GlobalData, a prominent data and analytics firm.
This marks a year-on-year (YoY) decrease of 23.1% in VC deal volume, while the total disclosed funding value dropped by 22.5%, as noted by GlobalData.
In the same period last year, there were 3,006 VC deals reported in China, with a total disclosed funding value of $41.7 billion.
Aurojyoti Bose, lead analyst at GlobalData, indicated that VC funding in China remains subdued in 2024, as investor confidence appears to have declined due to a crackdown on businesses, ongoing macroeconomic challenges, and uncertain market conditions.
“Despite this reduction, China continues to be the leading APAC market for VC funding, remaining a significant global player, second only to the US in deal volume and value,” Bose stated.
In terms of global VC activity, China held a 15.2% share of the total number of VC deals announced worldwide from January to November 2024, while its share of the corresponding funding value was 13.6%.
Among the prominent VC funding deals were $1.5 billion raised by Changxin Technology, $1.4 billion by AVATR, $1.1 billion by IM Motors, and $1 billion received by Moonshot AI, among others.
In contrast, VC investment in India surged dramatically to $4 billion in the second quarter of 2024 (April-June), up from $2.9 billion in the preceding quarter. Meanwhile, China experienced a substantial decrease in VC investment, plummeting from $13.5 billion to $6.9 billion during the same period.
A recent KPMG report suggests that VC investment in India is likely to continue its upward trajectory, bolstered by the country’s stable government and favorable economic conditions.
