Consumer
Chinese Consumers’ Post-Covid Pullback Slows Startup Fundraising to Trickle
- Funding for consumer sector drops more than 70% on-year in 1Q
- Investments target companies providing ‘good value for money’
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Once flush with cash, China’s consumer startups are finding themselves in a fundraising dry spell.
Investment into the sector by China-focused venture capital and private equity firms plunged by more than 70% to a paltry $400 million in the first quarter from the same period in 2023, according to data compiled by research firm Preqin Ltd. That comes on the heels of a more than 90% decline last year — from a peak of $73 billion in 2018 — Preqin said.