China's EV Startups Defy Funding Slump With $6 Billion of Deals
- Auto sector takes top spot for venture capital investments
- Local governments flock to EV startups as options dwindle
Employees install batteries onto a Nio electric SUV at the company’s production facility in Hefei.
Photographer: Qilai Shen/BloombergChina’s electric vehicle startups are defying the venture capital winter.
While the country is leading a global contraction in VC investment, its auto sector has taken the top spot for funding so far this year, with more than 147 deals amounting to $5.95 billion, according to data from research firm Preqin. Much of that has been from capital flowing into EVs, with batteries and semiconductors — two other high-growth sectors in the new-energy vehicle chain — in fourth and fifth place. All three have logged more deals than last year, while fundraising for once-hot industries like internet businesses, education and real estate have fallen off a cliff.