Venture capital (VC) funding in Chinese startups dropped 46.4 per cent to $57.4 billion in 2022 from $107bn in 2021 due to regulatory crackdown on technology companies and a stringent zero-Covid policy, data and analytics firm GlobalData said.
Financing deal volume fell by 14.4pc to 3,755 in 2022 from 4,388 in 2021.
The massive decline in venture capital funding value is indicative of the cautious nature of the investors, said Aurojyoti Bose, lead analyst at GlobalData.
“In fact, there was a notable fall in average funding size of VC deals announced in China during 2022,” he added.
China is the top Asia-Pacific market and among the top four markets globally in terms of VC funding deal volume and value.
It accounted for 14.1pc and 13.6pc share of global VC funding value and volume, respectively, in 2022.
However, China experienced the highest decline among the top four markets, including the US.