China’s Venture Funding Plunges After Crackdown

The value of venture capital deals in China tumbled 44% to $62.1 billion through October compared with the same period in 2021.

(Bloomberg) — Venture capital investments in China are falling sharply this year, making it one of the worst-performing countries globally after a regulatory crackdown and an overall decline in tech valuations.

The value of venture capital deals in the country tumbled 44% to $62.1 billion through October compared with the same period in 2021, according to research firm Preqin. China once rivaled the U.S. for capital invested in startups, before President Xi Jinping’s administration embarked on sweeping efforts to overhaul the practices of giants like Alibaba Group Holding Ltd. and Tencent Holdings Ltd.