Venture Funding Declines in China in Q3 2008

After a record high level in Q2, fundraising in China's venture capital market was reduced sharply during Q3.  A total of 17 domestic and foreign VC firms established 20 venture capital funds during Q3 2008.  The number of new funds was only half of that in the last quarter, and the amount of raised capital was reduced by 83.7%. This figure represents only US$492.2 million of new capital available for investing in mainland China.

In Q3, 109 Chinese enterprises received venture capital with a disclosed amount totaling $787.7 million. In comparison with Q2 2008, the number of deals reduced notably by 50, and the disclosed investment amount reduced by 34.6%.

The deepening of the international financial crisis and the slowing-down of the world economy growth contributed to this decline in investment.  The figures are sourced from Zero2IPO's "China Venture Capital Report Q3 2008" report.