China VC funding faces challenges as deal value plummets in Q1-Q3 2025, finds GlobalData
The venture capital (VC) landscape in China has encountered a notable shift in the first three quarters (Q1-Q3) of 2025, marked by a decline in funding value while deal volume improved. The total number of VC deals announced in China increased by about 2% during Q1-Q3 2025 compared to the same period in the previous year. However, the total VC funding value plummeted by around 32% year-on-year (YoY) during the same period, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While the country remains a significant player in the global VC arena standing just next to the US, the current environment reflects a more cautious investment approach. The massive contraction raises questions about the future trajectory of VC investments in one of the world’s largest markets. The decline also highlights the challenges faced by Chinese startups in securing large investments and is indicative of a broader trend towards more selective investment strategies. Investors seem to be exercising greater caution, leading to a more conservative approach to capital allocation.”
An analysis of GlobalData’s Deals Database revealed that China accounted for about 17% share of the total number of VC deals announced globally during Q1-Q3 2025. However, with the decline in funding value being more pronounced, China’s share of global value stood at 7%, down from 14% share during Q1-Q3 2024.
The comparative performance of other leading markets further underscores the challenges faced by China. While the US experienced a remarkable 84% increase in funding value during Q1-Q3 2025 compared to Q1-Q3 2024, the UK and India recorded growth of 5% and 14% YoY, respectively. The contrast in trends suggests China is grappling with a tightening investment climate, which may be influenced by regulatory changes and broader economic uncertainties.
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain
