VC dealmaking in Greater China remains resilient, but uncertainty looms
VCs invested a near-record $113.8 billion in the Greater China region last year—a remarkable total given tightened regulations from Beijing on foreign IPOs that should have drastically affected the venture market.
The impact could still occur, according to our H2 2021 Greater China VC Report, as investors active in the region signal that they may take a more cautious approach. Still, strong dealmaking across a range of sectors and stages underscores the importance of Greater China to global investors.
Key takeaways
- Capital continued to flow in from abroad, with more than 950 deals including participation from an investor based outside the region.
- The IT hardware sector set records in both deal value and count, with the final figures increasing 86% and 26% year over year, respectively.
- Exit value totaled a record $239.0 billion, a significant portion of which came from IPOs, highlighting VC liquidity’s reliance on healthy public markets.
- Fundraising continued to fall, with the lowest total raised since at least 2015 and a third consecutive year of declining fund count.
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Table of contents
| Introduction | 2 |
| VC deal activity | 3 |
| Dealmaking | 5 |
| Investor breakdown | 8 |
| Deals by sector | 9 |
| Deals by region and native currency type | 13 |
| Exits | 14 |
| Fundraising | 16 |
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