Deals
Tech Startup Funds Plummet in China as Easy Money Dries Up
- Early-stage funds fell 53% in the first half, Zero2IPO says
- Venture capital exits dived 65%, the research firm estimates
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The funding deluge that fueled one of the world’s fastest technology booms may be ebbing.
Capital raised by investment firms intended for seed and early funding -- before a startup seals its first round of financing -- plunged 53 percent to just 3.82 billion yuan ($559 million) in the first half, according to a survey of 36 funds by Chinese researcher Zero2IPO. More than 200 domestic venture capital firms saw money available for investment slide 44 percent, according to a second poll.