PitchBook-2023年上半年大中华区风险投资报告（英）-2023.9-20页_4mb

H1 2023 Greater China Venture Report Summary

Key Takeaways

• Greater China’s venture ecosystem experienced reduced investment momentum in H1 2023, with total deal value dropping to $26.7 billion across 3,072 deals, a 31.4% YoY decline, and GP-led capital deployment slowing due to challenging fundraising and lack of outsized returns.
• Foreign investment declined, comprising only 10.0% of deals, reflecting government tech crackdowns, economic slowdown, and US-China tensions, along with barriers for US investors in high-tech sectors.
• The exit environment worsened, with total exit value falling to $77.5 billion, but projected annualized value at $145.0 billion for 2023, driven by domestic IPOs.
• Fundraising remained subdued, with $31.7 billion committed to 194 funds, where RMB-denominated funds dominated (98.5% of capital raised), and USD funds accounting for just 1.5%, impacted by geopolitical concerns.

Dealmaking

• Deal activity slowed, with megadeal value at its lowest since 2015, and early-stage deals experiencing a 39.9% YoY decline in value, though consumer goods & services saw a 37.3% share increase.

Foreign Investment

• Foreign investors held a smaller role, with US investments dropping to 3.2% of deals, influenced by de-risking strategies and regulatory restrictions.

Exits

• Exit value decreased to $72.0 billion, with foreign exits declining sharply to $2.5 billion, but overall ecosystem showing resilience if pace holds.

Fundraising

• Fundraising was concentrated in midsized and RMB funds, with dry powder at $153.8 billion, the lowest since 2015, affecting future deal activity.