VC funding plunges 25% in China; US, UK, India fare worse

China has witnessed a decline of 25.6 per cent in enterprise capital investments in startups, at $32.2 billion within the first three quarters of the calendar 12 months 2023, as towards $43.3 billion throughout the identical interval final 12 months.

It, nonetheless, fared significantly better than the US, the UK and India, which registered steeper declines in VC funding throughout the identical interval.

China accounted for 15.8 per cent of VC funding offers introduced globally throughout Q1-Q3 2023. Its share of the corresponding deal worth stood at 17.6 per cent.

“A complete of two,417 enterprise capital (VC) funding offers had been introduced in China in the course of the first three quarters (Q1-Q3) of 2023 whereas the disclosed funding worth of those offers stood at $32.2 billion,” based on a report by knowledge and analytics firm GlobalData.

The entire variety of VC funding offers declined by 16.7 per cent throughout Q1-Q3 2023, in comparison with 2,901 throughout the identical interval final 12 months.

“Though the VC funding exercise in China declined each by way of quantity and worth, it can’t be seen as a country-specific phenomenon. As investor sentiments have taken successful owing to the unstable market circumstances, subdued VC funding exercise is now a world pattern and China is just not an exception to this,” Aurojyoti Bose, Lead Analyst at GlobalData, stated.

Furthermore, the decline in VC funding in China was decrease than within the US, the UK, and India, he identified.

The VC funding deal quantity within the US, the UK, and India dropped by 40.3 per cent, 25.9 per cent, and 42.3 per cent, respectively, in the course of the interval. The decline within the corresponding worth for these markets was additionally comparatively greater at 45.6 per cent, 43.1 per cent and 70.4 per cent respectively.

Investments in India

A complete of 811 VC funding offers price $5.5 billion had been introduced in India in the course of the first three quarters of 2023, exhibiting a decline of 42.3 per cent by way of VC funding deal quantity and 70.4 per cent by way of disclosed funding worth.

India accounted for five.3 per cent share of VC funding offers introduced globally throughout Q1-Q3 2023. Its share of the corresponding offers worth stood at 3 per cent.
Among the notable VC funding offers introduced in India throughout Q1-Q3 2023 embody the $250-million fundraising by PhysicsWallah, $229 million funding raised by Perfios Software program Options, $200-million fundraising by PhonePe, and $200 million funding raised by Zepto.