Beijing, Shanghai and Shenzhen Account for 60% of Chinese Venture Capital

A new report from one of China’s leading think tanks indicates that the megacities of Beijing, Shanghai and Shenzhen grab the king’s share of venture capital investment in the country.

The “Guangdong Venture Capital Report (2017)” (广东风险投资报告(2017) released by the Guangdong Province Academy of Social Sciences on 23 April indicates that in 2017 the Chinese venture capital market saw a total of 4822 investments, for a year-on-year increase of 30.9%.

The 4437 investment projects who disclosed their investment sums involved a total of 202.588 billion yuan in funds, for a rise of 54.3% compared to 2016.

The average scale of investment has also increased, rising to 45.6589 million yuan for a YoY increase of 18.9%.

Out of 4822 venture capital investment in 2017 over 50% were concentrated in the Internet, IT or biotechnology sectors. The Internet sector came in first with 956 venture capital projects, followed by IT (927) and biotech (626).

Venture capital in China remains heavily dominated by first-tier cities, with nearly 60% of investments concentrated in the three cities of Beijing, Shanghai and Shenzhen.

Beijing is the stand out with 1391 venture capital investments in 2017, for a total investment sum of 71.819 billion yuan.

Shanghai is a distant second with 785 investment projects, and a total investment sum of 31.044 billion yuan, following by Shenzhen, with 554 investments, and a total sum of 16.271 billion yuan.

 

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