VC funding by China startups soar 55.9% in August 2022
even as several key global markets achieve new low
China-based startups raised $5.7 billion worth of venture capital (VC) funding in August 2022, which is a massive 55.9% growth compared to the previous month, reveals GlobalData, a leading data and analytics company.
China has been witnessing fluctuating month-on-month VC funding activity so far in 2022. However, August managed to witness massive growth in VC funding compared to the previous month, even though the deal volume declined by 14.8%.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “What makes this massive growth in VC funding amount even more significant is that this comes at a time when fundraising in other key global markets such as the US and UK not only witnessed decline but also hit their 2022’s lowest monthly level in August.”
An analysis of GlobalData’s Financial Deals Database reveals that a total of 2,529 VC funding deals were announced in China during January-August 2022 while the disclosed funding value stood at US$38.4bn.
Some of the notable VC funding deals announced during August in China include $1.1 billion funding raised by Sunwoda Electric Vehicle Battery, $736.6 million raised by Hubei Rongtong Hi-Tech Advanced Materials and US$500 million raised by Black Sesame Intelligent Technology.
Bose concludes: “China saw the announcement of several big-ticket deals during August 2022. In fact, when other key markets were reaching new lows in VC fundraising in August, China witnessed 2022’s first billion-dollar VC funding deal announcement.”