CX Daily: China Names New Chief of Securities Watchdog Amid Stock Slump

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After Salesforce reported annual revenues of more than $10 billion in 2018, venture capital investment flooded into China’s software as a service market in hopes of replicating its success. Photo: VCG　

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China’s software service providers cut costs, prices as investors pull back

China’s cloud software vendors are feeling the brunt of the sharpest drop in venture capital (VC) investment in the sector in a decade, with many rushing to cut prices or costs to tide them over.

The country’s current 13 software as a service (SaaS) unicorns — startups valued at more than $1 billion — raised just 495 million yuan ($69 million) from investors last year, the lowest amount since 2014, according to ITjuzi, a domestic provider of data on tech companies and investments, based on announced deals. The amount pales in comparison to the peak of 9.3 billion yuan they raised in 2021, when the Covid pandemic boosted demand for digital services.