Venture Capital Funding in China Rebounded in March

Financial Times writers Mercedes Ruehl and Ryan McMorrow reported this week that, “Venture capital funding in China rebounded in March, new figures showed, as investors hunted for bargains among start-ups after the coronavirus outbreak.

Chinese start-ups and technology companies raised more than $2.5bn during the month, marking a record sixfold rise from just $410m in February, according to data from the Asian Venture Capital Journal.

The rise in activity suggested that funds had taken advantage of lower valuations resulting from the pandemic to invest in sectors including biotechnology and online education. Authorities began reopening the Chinese economy in March after managing largely to contain the country’s coronavirus outbreak.”

The FT article noted that, “Fundraising in China remains significantly below the record levels seen in 2018, when a start-up boom peaked. That turned to a bust last year as returns languished and many investment companies went out of business.

“The recent pick-up in venture funding has not been matched in other markets that have been beneficiaries of Chinese capital, such as India and south-east Asia. Chinese venture capital investment in both fell to a two-year low in March, according to Refinitiv data.”

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