1、Oct 2024China VC market The great resetQ3 2024Image:Great Wall,Jinshanling,chengde,hebei,China;Max van den OetelaarPage/2 Source:The number of Chinese startups raising their first VC round is near all-time high.2020-2021 which were year of hugely active VC activity in the US and Europe,were instead

2、a reset time for VC in China,with lowest level of activity in a decade.Number of startups raising their first VC round per year in ChinaAlign top to this lineAlign left side of chartto this linexxAlign top of chart to this lineDealroom.co The number of projected first time funded companies in 2024 i

3、s likely underestimated due to reporting lag on small rounds.CHART AREA 930 x600,Border:0Just chartAlign right side of chart to this lineNumber of first time funded ProjectedNumber of startups raising their first VC round per year in ChinaPage/3 Source:Round count in China is near all-time high,with

4、 2023 being the most active year since 2018.The count for 2024 is expected to increase due to reporting lag.Number of VC round in China by stage view onlineAlign top to this lineAlign left side of chartto this linexxAlign top of chart to this lineDealroom.coCHART AREA 930 x600,Border:0Just chartAlig

5、n right side of chart to this line$01m(pre-seed)$14m(seed)$415m(series A)$1540m(series B)$40100m(series C)$100250m(mega rounds)$250m+(mega+)But 2022 had a lot of funding rounds?-dont trust quality enough probablyxxxx$01m(pre-seed)$14m(seed)$415m(series A)$1540m(series B)$40100m(series C)$100250m(meg

6、a rounds)$250m+(mega+)Number of VC round in China by stage view onlinePage/4 Source:Chinese VC funding is below 2015 levels due to drop in megarounds.Early and breakout stage are above pre 2017 and 2019-2020.China VC investment by stage view onlineAlign top to this lineAlign left side of chartto thi

7、s linexxAlign top of chart to this lineDealroom.co 2024 data projected for full yearCHART AREA 930 x600,Border:0Just chartAlign right side of chart to this line$01m(pre-seed)$14m(seed)$415m(series A)$1540m(series B)$40100m(series C)$100250m(mega rounds)$250m+(mega+)China VC investment by stage view

8、online$01m(pre-seed)$14m(seed)$415m(series A)$1540m(series B)$40100m(series C)$100250m(mega rounds)$250m+(mega+)Page/5 Source:China share of global VC funding is just 13%in 2024,less than half the 30%peak in 2018.The US and Europe are attracting the highest share in nearly a decade.Region share of g

9、lobal VC funding view onlineAlign top to this lineAlign left side of chartto this linexxAlign top of chart to this lineDealroom.coCHART AREA 930 x600,Border:0Just chartAlign right side of chart to this line30%13%Rest of WorldUSA Europe Rest of Asia China Region share of global VC funding view online

10、Page/6 Source:Foreign investors have almost disappeared from China.Its all domestic capital now.Less than 2%of capital in 2024 has come from US investors,compared to 20%+in 2017-2018.VC investment in China by investor HQ view onlineAlign top to this lineAlign left side of chartto this linexxAlign to

11、p of chart to this lineDealroom.coCHART AREA 930 x600,Border:0Just chartAlign right side of chart to this line91%55%24%2%VC investment in China by investor HQ view online91%55%24%2%Rest of WorldUSA Europe Rest of Asia China Page/7 Source:Manufacturing attracted nearly 80%of Chinas VC funding in 2023

12、,up 4x from 2016.China venture capital investment by business modelAlign top to this lineAlign left side of chartto this linexxAlign top of chart to this lineDealroom.coCHART AREA 930 x600,Border:0Just chartAlign right side of chart to this linePage/8 Source:Source:CHART AREA 350 x420,Border:20pxJus

13、t chartDealroom.coRest of consumer techMarketplaces&e-commerceFintechVC investment(24 projected)VC investment(24 projected)VC investment(24 projected)Some VC sectors have completely disappeared from the Chinese market in the last few years.Chinese VC funding in Page/9 Source:Deep Tech now makes up 40%of Chinas VC funding,a record share.This share has grown 4x since 2018,mainly driven by semiconductors,space,AI&am